Sealy IPO rakes in $448 million on first day
Over half to repay debt
Larry Thomas -- Furniture Today, April 7, 2006
ARCHDALE, N.C. — Bedding major Sealy raised $448 million in its initial public offering of common stock today as its shares began trading on the New York Stock Exchange.
The bedding producer said it will receive net proceeds of $295 million from the offering, more than half of which will be used to repay debt.
In addition to debt repayment, some $125 million has been set aside to pay a special dividend to existing stockholders, another $17.3 million for transaction-related bonuses for top managers, and $11 million will go to the buyout firm of Kohlberg Kravis Roberts to terminate a management services agreement.
KKR, which owned more than 80% of Sealy’s stock prior to the IPO, retains a 56% stake in the company. About 24% of the shares are now owned by the public, and another 8% remains in the hands of Sealy management.
Other major shareholders include Northwestern Mutual Life Insurance, which has approximately 4.5% of the shares, and the Teachers Assurance and Annuity Assn. of America, which has about a 2% stake.
The 28 million-share offering initially was priced at $16 per share, but shares traded as high as $18 this morning.
Sealy said 8 million of the shares were sold by existing stockholders, and the group could sell an additional 4.2 million shares if the IPO underwriters exercise purchase options within 30 days.
The company has been owned by a series of private equity firms since 1989. KKR acquired controlling interest in April 2004.
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Sealy IPO rakes in $448M
Apr 23, 2006 -
Sealy IPO rakes in $448M
Apr 13, 2006
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