Ropes & Gray Advises Mattress Firm on Financing for Sleepy’s Acquisition

Ropes & Gray advised Mattress Firm Holding Corp. in obtaining the debt financing for the acquisition by its wholly owned subsidiary, Mattress Firm, Inc., of all of the outstanding equity interests in HMK Mattress Holdings LLC, the holding company of Sleepy’s and related entities. Sleepy's is the United States’ second largest specialty mattress retailer, with more than 1,050 stores in 17 states in the Northeast, New England, the mid-Atlantic and Illinois. The transaction closed on Feb. 5.

The debt financing consisted of a $665 million senior secured term loan credit facility and a $200 million five-year asset-based revolving credit facility. The financing was obtained through a syndicate of lenders led by Barclays Bank PLC and included J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Bank, N.A.

The Ropes & Gray team included finance associates Arek Maczka and Scott Rolnik.