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B of A Puts Mattress Co. 'B' To Bed

16 Feb 2003

Bank of America's fully underwritten $235 million deal for National Bedding Company has closed after some tranche shifts, including an increase to $140 million on the previously $100 million "B" piece. A banker familiar with the deal said that the five-and-a-half-year "B" had been oversubscribed at the initial level and there were no plans to increase the size of the credit. The "A" loan was reduced from $75 million to $35 million, he added, while the revolver stayed at $60 million. The five-year senior secured pro rata priced at LIBOR plus 3%, while the "B" priced at LIBOR plus 33/ 4%. National Bedding's leverage figures are 3.3 times senior and 3.4 times total, the banker added.

The deal backs National Bedding's acquisition of bankrupt Sleepmaster for about $202 million (LMW, 2/10). The mattress company will be paying $110 million of Sleepmaster's secured debt in the transaction. Burt Kaplan, co-chairman of National Bedding, noted that La Salle Bank was involved in leading the company's previous bank deals and would participate in the new facility as well. A B of A official declined to comment on the B+/B1 rated facility.

16 Feb 2003