Somnigroup Reprices $1.6B Term Loan B Due October 2031, Cuts Margin By 25 Basis Points

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.