TRINITY, N.C., July 13 /PRNewswire-FirstCall/ -- Sealy Corporation (NYSE: ZZ) announced today the settlement of its previously announced rights offering for $177,132,000 aggregate principal amount of 8% senior secured third lien convertible notes due 2016 on July 10, 2009.
As a result of the exercise of the rights and the issuance of the convertible notes, the Company has successfully completed the comprehensive refinancing plan announced on May 13, 2009.
The Company has been informed by the subscription agent that approximately 96.4% of the subscription rights were directly exercised for approximately $170.8 million aggregate principal amount of convertible notes, which includes approximately $89.7 million by Sealy Holding LLC, the Company's majority shareholder. The approximately $6.3 million aggregate principal amount available pursuant to the oversubscriptions were allocated among those who properly exercised their oversubscription privilege in accordance with the proration procedures described in the prospectus supplement for the rights offering for a total issuance by the Company of $177,132,000 aggregate principal amount of convertible notes.
The Company has applied to list the convertible notes, CUSIP 812139 400, on the NYSE. The Company expects to receive approval of the listing this week and for the Notes to begin trading on the NYSE by July 20, 2009. The Company plans to provide the ticker symbol for the convertible notes in a filing on Form 8-K later this week.
Citigroup Global Markets Inc. acted as the dealer manager for the rights offering. Additional information regarding the rights offering may be obtained from the Company's information agent, National City Bank, c/o The Colbent Corp., 161 Bay State Drive, Braintree, Massachusetts 02184, (800) 622-6757.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the convertible notes referred to in this press release in any state or jurisdiction in which such offer or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. The rights offering was made only by means of a prospectus supplement and accompanying prospectus.
About Sealy
Sealy is the largest bedding manufacturer in the world with sales of $1.5 billion in fiscal 2008. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy(R), Sealy Posturepedic(R), Stearns & Foster(R), and Bassett(R) brands. Sealy operates 25 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to approximately 3,000 customers with more than 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry. For more information, please visit www.sealy.com.
This document contains forward-looking statements within the meaning of the safe harbor provisions of the Securities Litigation Reform Act of 1995. Terms such as 'expect,' 'believe,' 'continue,' and 'grow,' as well as similar comments, are forward-looking in nature. Although the Company believes its growth plans are based upon reasonable assumptions, it can give no assurances that such expectations can be attained. Factors that could cause actual results to differ materially from the Company's expectations include: general business and economic conditions, competitive factors, raw materials purchasing, and fluctuations in demand. Please refer to the Company's Securities and Exchange Commission filings for further information.
SOURCE Sealy Corporation
