Somnigroup announces successful Term Loan B repricing

• Somnigroup International (NYSE:SGI) announced on Wednesday the successful repricing of its $1.6B 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%. The margin can see 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.
• Concurrent with the repricing, the company intends to prepay $100M 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 $5M, with the opportunity to realize further savings of $4M if total net leverage is below 3.0 times adjusted EBITDA.

https://seekingalpha.com/news/4459318-somnigroup-announces-successful-term-loan-b-repricing?mailingid=40337669&messageid=2900&serial=40337669.96&source=email_2900