Tempur Sealy proposes $800M intraday bond offering

Tempur Sealy International Inc. is offering $800 million of eight-year (non-call three) senior notes via bookrunners J.P. Morgan, BofA Securities, Wells Fargo, Fifth Third, Mizuho, SMBC Nikko, Goldman Sachs and Truist. Pricing for the bonds will follow an investor call today at 11 p.m. ET.

Proceeds are slated to redeem in full the company's outstanding $600 million of 5.5% senior notes due 2026 and for general corporate purposes.

The 2026 bonds were issued in May 2016 and serve as the company's most recent bond market tap.

S&P Global Ratings today assigned a BB issue-level rating to the proposed senior notes, with a 3 recovery rating. The agency also revised the outlook on Tempur Sealy to positive, from stable, and affirmed the BB issuer credit rating, noting the company's "operating performance continues to improve because of strong demand for mattresses and market share gains, resulting in substantial EBITDA growth and lower leverage."

"We expect the company to maintain strong profitability as it outperforms competitors," Ratings said.

Fitch has assigned BB and 4 recovery ratings to today's new issue while affirming the BB issuer rating. The outlook is stable.

On March 3, Moody's affirmed Tempur Sealy's corporate family rating at Ba3 and senior unsecured debt at B1. Concurrently, the outlook was changed to positive from stable.

Tempur Sealy develops, manufacturers and distributes bedding products.