Deals
Banks Offer Mid-Single Digit Yield on Tempur Sealy Loan
- Initial price talk is 2.25 to 2.5 percentage points over SOFR
- FTC is suing to block deal, citing antitrust concerns
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A group of banks led by Wells Fargo & Co. are offering a mid-single digit yield on a $1.6 billion first lien term loan to support Tempur Sealy International Inc.’s acquisition of Mattress Firm Group Inc., according to a person familiar with the matter.
Initial pricing discussions on the seven-year covenant-lite loan call for a margin of 2.25 to 2.5 percentage points over the Secured Overnight Financing Rate Rate, offered at a discounted price of 99.5 cents on the dollar, the person said, asking not to be identified because the information is private. The transaction is rated Ba1 by Moody’s Ratings, the person added, the highest non-investment grade rating.