Simmons Company Debt Upgraded by Moody's

Furniture World News

Simmons Company, a leading manufacturer of premium-branded bedding products, announced that its debt rating and the debt ratings of its operating subsidiary, Simmons Bedding Company (“Simmons Bedding”), have been upgraded by Moody’s Investors Service. Moody’s rated Simmons’ outlook as positive. Moody’s upgraded the debt ratings of: Simmons Beddings’ $492 million secured term loan, from B2 to Ba3; Simmons Beddings’ $75 million secured revolving credit facility, from B2 to Ba3; Simmons Beddings’ $200 million subordinated notes, from Caa1 to B3; and Simmons’ $269 million discount notes, from Caa2 to Caa1. “We are very pleased with Moody’s recognition of the progress we have made,” said Charlie Eitel, Simmons’ Chairman and Chief Executive Officer. “The ratings upgrades reflect our strong 2006 financial performance and consequent debt reduction. Importantly, the ratings upgrade also allows Simmons greater financial flexibility. We appreciate Moody’s expression of confidence in our ability to continue to deliver superior results.” As a result of the ratings upgrade, the interest rate margin for Simmons Bedding’s bank term loan was lowered to LIBOR plus 2% from LIBOR plus 2.25%. The upgrades arose from a review by Moody’s under its new Probability-of-Default and Loss-Given-Default rating methodology. Simmons was one of approximately 100 companies reviewed in six U.S. sectors, including the Consumer Products sector. About Simmons Company: Atlanta-based Simmons Company, through its indirect subsidiary Simmons Bedding Company, is one of the world's largest mattress manufacturers, manufacturing and marketing a broad range of products including Beautyrest®, BackCare®, Beautyrest BlackTM, Natural CareTM Latex, BackCare Kids® and Deep Sleep®. Simmons Bedding Company operates 17 conventional bedding manufacturing facilities and two juvenile bedding manufacturing facilities across the United States and Puerto Rico. Simmons is committed to developing superior mattresses and promoting a higher quality sleep for consumers around the world. For more information, visit the Company's website at www.simmons.com.