TRINITY, N.C., May 28 /PRNewswire-FirstCall/ -- Sealy Corporation (NYSE: ZZ) announced the filing of the prospectus supplement relating to its previously disclosed rights offering. Under the rights offering, Sealy Corporation (the 'Company') has distributed at no charge to the holders of its common stock transferable subscription rights to purchase up to an aggregate principal amount of $177,132,000 of 8% senior secured third lien convertible notes due 2016 (the 'Notes') to be co-issued by the Company and its subsidiary, Sealy Mattress Company.
The Company has distributed one transferable subscription right for each share of common stock owned as of 5:00 p.m., New York City time, on May 26, 2009, the record date for the rights offering. Every 13 subscription rights will allow the holder to purchase one Note with a subscription price and an initial principal amount of $25.00.
The rights offering will expire on July 2, 2009 at 5:00 p.m., New York City time, unless extended. The rights have been admitted for trading on the New York Stock Exchange (the 'NYSE') under the symbol 'ZZ RT' and can be traded on the NYSE until 4:00 p.m., New York City time, on July 1, 2009, unless the expiration of the rights offering is extended. The rights will be freely transferable by holders until the close of business on the last business day preceding the expiration date, or until the close of business on June 29, 2009 if such transfers are made through the subscription agent. Each stockholder will have the right to oversubscribe in the rights offering up to the number of Notes for which it subscribed under its subscription privilege, subject to the pro ration provisions of the rights offering.
The Notes will bear interest of 8% per annum, payable semi-annually in kind, and will be convertible into shares of Sealy Corporation common stock at an initial conversion price of $1.00 per share, or initially 25 shares per Note. While the Notes are not subject to optional redemption by the Company prior to their 2016 maturity, the Company may elect to terminate holders' conversion rights on or after July 15, 2012 upon the occurrence of specified conditions relating to the trading price of the Company's common stock and its ratio of net debt to earnings before interest, taxes, depreciation and amortization.
