- Facility provides independent liquidity to support Mattress Firm’s strategic initiatives
- New revolving credit facility will be available for business operations
HOUSTON, December 22, 2017 /PRNEWSWIRE/ — Mattress Firm Inc. (the “Company”), America’s largest specialty mattress retailer, today announced that it entered into a new up to $225 million senior secured asset-based revolving credit facility (the “ABL Facility”). This new revolving credit facility will be available for working capital needs and other general corporate purposes. The ABL Facility has an initial aggregate principal availability amount of $75 million. The Company intends to upsize the facility via an incremental availability feature to a total aggregate principal amount of up to $225 million.
“This new credit facility provides independent liquidity and capital to support our strategy, and demonstrates the strength of our business, the value of our assets and the quality of our brands,” stated Ken Murphy, Mattress Firm’s president and CEO. “Over the past year we have made multiple strategic investments that position us to build on our long-term vision to become the largest U.S. vertically integrated mattress retailer. These investments included accelerating our national rebranding to the Mattress Firm banner, adjusting our merchandise offering to offer better value to consumers, and improving our organizational structure. With these initiatives behind us we are excited about the long-term profitable growth opportunities for our business.”
Barclays acted as administrative agent, sole book runner and sole lead arranger on the ABL Facility. Sidley Austin LLP acted as legal counsel to Mattress Firm in connection with the financing. Paul Hastings LLP acted as legal counsel to Barclays in connection with the financing.
Certain statements contained in this press release are not based on historical fact and are “forward-looking statements” within the meaning of applicable federal securities laws and regulations. In many cases, you can identify forward-looking statements by terminology such as “may,” “would,” “should,” “could,” “forecast,” “feel,” “project,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue”, or the negative of these terms or other comparable terminology; however, not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release, such as those relating to any anticipated effects of this financing or subsequent financings, are subject to various risks and uncertainties, including but not limited to downturns in the economy; reduction in discretionary spending by consumers; our ability to execute our key business strategies and realize costs savings and efficiencies; our ability to profitably open and operate new stores and capture additional market share; our relationship with our primary mattress suppliers; our dependence on a few key employees; the possible impairment of our goodwill or other acquired intangible assets; the effect of our planned growth and the integration of our acquisitions on our business infrastructure; the impact of seasonality on our financial results and comparable-store sales; our ability to raise adequate capital to support our liquidity; the intent to upsize the ABL Facility; our success in pursuing and completing strategic acquisitions; the effectiveness and efficiency of our advertising expenditures; our success in keeping warranty claims and comfort exchange return rates within acceptable levels; our ability to deliver our products in a timely manner; our status as a subsidiary of Steinhoff International Holdings N.V.; heightened competition; changes in applicable regulations; and risks related to our franchisees, including our lack of control over their operation and our liabilities if they default on note or lease obligations.
Forward-looking statements relate to future events or our future financial performance and reflect management’s expectations or beliefs concerning future events as of the date of this press release. Actual results of operations may differ materially from those set forth in any forward-looking statements, and the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation by us that our plans or objectives will be achieved. We do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.
About Mattress Firm
Founded in 1986, Houston-based Mattress Firm is the nation’s first and only border-to-border, coast-to-coast specialty bedding retailer. With approximately $3.3 billion in revenue generated annually through over 3,300 stores across 49 states and multiple online sites, Mattress Firm offers a broad selection of mattresses and bedding accessories from leading manufacturers and brand names, including Serta, Simmons, Dream Bed, tulo, Sleepy’s and Hampton & Rhodes. In 2016, Mattress Firm was acquired by Steinhoff International Holdings N.V. and currently operates as a subsidiary of Steinhoff
Mattress Firm Contact:
Scott McKinney, Senior Vice President – Finance & Investor Relations
firstname.lastname@example.org or +1 (346) 718-5402
Erica Martinez, Jackson Spalding
email@example.com or +1 (214) 269-4404