Simmons bedding to file for bankruptcy

September 25, 2009 8:45:26 AM PDT
Bedding company Simmons says it plans to file for Chapter 11 bankruptcy protection and implement a restructuring plan that will help significantly lower its debt. The privately held company says the restructuring includes the acquisition of Simmons Bedding Co., its subsidiaries and parent company Bedding Holdco Inc. by affiliates of Ares Management LLC and Teachers' Private Capital.

The $760 million deal includes equity from Ares and TPC and some of Simmons' current lenders and debt commitments from certain Simmons' lenders.

In addition, Simmons Bedding has arranged a $35 million debtor-in-possession credit facility.

Simmons Co. says its plan will reduce total debt from about $1 billion to approximately $450 million.

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