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Mattress Giant refinances

David Perry -- Furniture Today, April 24, 2005

Addison, Texas — Mattress Giant, one of the largest U.S. bedding retailers, has completed a long-term refinancing that it says positions the chain for growth.

In a letter to the company's business partners, CEO Barrie Brown didn't reveal specifics but said CIT Retail Finance is the new senior lender, with additional financing from Laminar Direct Capital.

"This is a simple refinancing of our capital, and in no way a sale or merger of the company," Brown wrote. "Everything remains the same with the added benefit of a significantly reduced cost of capital. Our capital structure is now streamlined and more efficient.

"Through the replacement of our short-term financing with the new long-term financing," he continued, "we will significantly reduce our cost of capital, giving us additional funds to grow the company. The newly restructured funding gives Mattress Giant a firm financial footing, insuring continued smooth operations into the future."

Mattress Giant ranks No. 6 on Furniture/Today's list of the Top 25 Bedding Retailers, with estimated bedding sales in 2003 of $188 million, a 2.2% increase over the prior year. The chain currently operates 262 stores.

Brown told Furniture/Today the company is ready for significant expansion. "Now that the refinancing is done, we are looking to rapidly expand in our current and select new markets, as well as to explore strategic acquisitions," he said.

Mattress Giant's vendors are Simmons, Airsprung, Kingsdown, King Koil, Spring Air, Serta, Tempur-Pedic, Fashion Bed Group, Leggett & Platt, Sleep Innovations, Magiseal and Protect A Bed.

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