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Somnigroup Announces Successful Term Loan B Repricing

1. SGI reprices $1.6 billion Term Loan B, reducing interest margin. 2. Expected annual cash interest savings of $5 million post-repricing. 3. SGI to prepay $100 million of loan principal, boosting financial position. 4. CEO highlights lender confidence and aims to reduce leverage ratio. 5. Total net leverage could reduce further interest costs by $4 million.

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FAQ

Why Bullish?

The successful loan repricing and prepayment indicate improved financial management, reminiscent of past restructuring events that positively impacted stock prices. Companies typically see bullish movement after such strategic financial decisions.

How important is it?

The article details a strategic financial move, directly impacting SGI's cash flow and investor confidence, which can influence share price. Stakeholders and analysts often closely monitor such financial maneuvers.

Why Short Term?

Investors may react positively in the short-term, driven by immediate cash savings. Similar past instances show stock price increases following debt improvements, typically within a few weeks.

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, /PRNewswire/ -- Somnigroup International Inc. (NYSE: SGI, "Company" or "Somnigroup") today announced the successful repricing of its $1.6 billion Term Loan B due October 2031. The loan was repriced with a reduction to the current applicable margin by 25 basis points, from SOFR plus 2.50% to SOFR plus 2.25%, with a further step-down to SOFR plus 2.00% if total net leverage is below 3.0x adjusted EBITDA per the Company's credit agreement ("adjusted EBITDA"). Concurrent with the repricing, the Company intends to prepay $100 million of the outstanding term loan B principal balance with cash on hand and revolver borrowings. The Company estimates the repricing and prepayment will produce annualized cash interest savings of approximately $5 million, with the opportunity to realize further annualized cash interest savings of $4 million if total net leverage is below 3.0 times adjusted EBITDA. Scott Thompson, Somnigroup Chairman and Chief Executive Officer, commented, "We are very pleased to announce this successful debt repricing, which demonstrates continued lender confidence in Somnigroup and our team's dedication to maintaining a strong financial position. The team is focused on driving our robust free cash flow, reducing our leverage ratio and delivering our shareholders above market returns." Forward-Looking Statements This press release contains statements that may be characterized as "forward-looking," within the meaning of the federal securities laws. Such statements might include information concerning one or more of the Company's plans, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "estimates," "expects," "intends," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to future performance and debt leverage expectations. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations, meet its guidance, or that these beliefs will prove correct. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made. About Somnigroup Somnigroup (NYSE: SGI) is the world's largest bedding company, dedicated to improving people's lives through better sleep. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in more than 100 countries worldwide through our fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy's®, and our global omni-channel platform enables us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored solutions. Somnigroup Investor Relations Contact Aubrey MooreInvestor RelationsSomnigroup International Inc.800-805-3635[email protected] SOURCE Somnigroup International WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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