Somnigroup International Inc. announced the successful repricing of its $1.6 billion Term Loan B, which is due in October 2031. The repricing reduced the applicable margin by 25 basis points, from SOFR plus 2.50% to SOFR plus 2.25%.
A further step-down to SOFR plus 2.00% is possible if total net leverage falls below 3.0x adjusted EBITDA. Concurrent with the repricing, Somnigroup intends to prepay $100 million of the outstanding principal balance using cash on hand and revolver borrowings.
The company estimates these actions will produce annualized cash interest savings of approximately $5 million. An additional $4 million in annualized cash interest savings could be realized if the total net leverage ratio drops below 3.0 times adjusted EBITDA.
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