Serta Simmons’ major lenders take steps to negotiate possible restructuring

DORAVILLE, Ga. – Advisors to a group of Serta Simmons Bedding the lenders reportedly signed non-disclosure agreements to discuss a potential mattress company restructuring that could include a Chapter 11 filing, according to Reorg Research Online (subscription required).

SSB’s first term loan and second term loan due August 2023 have gone mainstream, according to the report. A company spokesperson shares this statement with Furniture Today. “We do not comment on rumors and speculation. We remain focused on managing and investing in our business, as well as serving our customers. »

The story goes on to say that the lenders for the first lien term loan due November 2023, including Apollo, Angelo Gordon and Gamut, considered re-litigating in New York to challenge SSB’s 2020 recapitalization. At the time, SSB said the transaction was expected. to reduce net debt by approximately $400 million and provide $200 million of new capital to increase the company’s financial strength.

The group of lenders is advised by Gibson Dunn and Centerview Partners.

The Reorg report follows news earlier this month that Moody’s Investor Services had downgraded SSB’s corporate rating and said the maker’s outlook was negative. The department based its demotion on the company’s $1.9 billion in debt and dwindling cash reserves.

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I’m Sheila Long O’Mara, Managing Editor at Furniture Today. Throughout my 25 year career in the furniture industry, I have served as editor for several industry publications and had a brief stint at a public relations firm where I worked with some of the leading bedding brands in the industry. I joined Furniture Today in December 2020 focusing on bedding and sleep products. It’s a homecoming for me, as I was a writer and editor at Furniture Today from 1994 to 2002. I’m glad to be back and look forward to telling the important stories that impact retailers. and bedding manufacturers.

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