Sleepy's Holdings LLC is adding a new $170 million senior secured term loan, to be issued by its newly-formed indirect subsidiary, HMK Intermediate Holdings LLC, partly to fund a distribution to existing shareholders and refinance existing indebtedness. Calera Capital is simultaneously acquiring a significant minority interest by purchasing $156 million of preferred equity of a newly-formed holding company, HMK Mattress Holdings LLC (Sleepy's). Standard & Poor's Ratings Services has assigned preliminary recovery and issue-level ratings to the proposed $170 million term loan. We simulate a default occurring in 2014 due to a protracted decline in the economy that leads to lower consumer spending on mattresses and other bedding products. Sleepy's debt structure consists of: A $30 million asset-backed revolving lending...
Companies mentioned in this report are: HMK Mattress Holdings LLC
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