Sealy Corporation Announces Final Results and Settlement of Its Previously
Announced Rights Offering
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
Mark D. Boehmer, VP & Treasurer, Sealy, +1-336-862-8705
