Debt

3 Months Ended

Mar. 31, 2025

Debt for the Company consists of the following:


	March 31, 2025			December 31, 2024
(in millions, except percentages)	Amount		Rate	Amount		Rate	Maturity Date
2023 Credit Agreement:
Term A Facility	$	1,085.9	(1)	$	475.0	(1)	October 10, 2028
Term B Facility	1,596.0		(2)	1,600.0		(2)	October 24, 2031
Revolver	481.0		(1)	—			October 10, 2028
2031 Senior Notes	800.0		3.875%	800.0		3.875%	October 15, 2031
2029 Senior Notes	800.0		4.000%	800.0		4.000%	April 15, 2029
Securitized debt	109.8		(3)	—			October 8, 2026
Finance lease obligations (4)	96.8			88.7			Various
Other	100.4			80.8			Various
Total debt	5,069.9			3,844.5
Less: Deferred financing costs	36.9			34.6
Total debt, net	5,033.0			3,809.9
Less: Current portion	112.3			69.5
Total long-term debt, net	$	4,920.7		$	3,740.4


(1)			Interest at SOFR index plus 10 basis points of credit spread adjustment, plus applicable margin of 1.250% as of March 31, 2025 and December 31, 2024.
(2)			Interest at SOFR index plus applicable margin of 2.500% as of March 31, 2025 and December 31, 2024.
(3)			Interest at one month SOFR index plus 10 basis points of credit spread adjustment, plus 85 basis points.
(4)			New finance lease obligations are a non-cash financing activity.

As of March 31, 2025, the Company was in compliance with all applicable debt covenants.

2023 Credit Agreement

On October 10, 2023, the Company entered into the 2023 Credit Agreement with a syndicate of banks. The 2023 Credit Agreement provides for a $1.15 billion revolving credit facility, a $500.0 million term loan facility, and an incremental facility in an aggregate amount of up to the greater of $850.0 million and additional amounts subject to the conditions set forth in the 2023 Credit Agreement, plus the amount of certain prepayments, plus an additional unlimited amount subject to compliance with a maximum consolidated secured leverage ratio test. The 2023 Credit Agreement has a $60.0 million sub-facility for the issuance of letters of credit.

On February 6, 2024, the Company and certain other parties thereto entered into an Amendment No. 1 ("Amendment No. 1") to the 2023 Credit Agreement which provided for a $625.0 million Delayed Draw Term A Loan and a $40.0 million increase in availability on the existing revolving loan. This amendment was executed in connection with the Company's financing strategy for the Mattress Firm Acquisition.

On October 24, 2024, the Company and certain other parties thereto entered into an Amendment No. 2 ("Amendment No. 2") and an Amendment No. 3 ("Amendment No. 3") to the Company's 2023 Credit Agreement. Amendment No. 2 extended the termination date for $605.0 million of the Delayed Draw Term A Loan commitments until October 24, 2025, among other changes. Amendment No. 3 provided for an incremental Term B Loan in the aggregate principal amount of $1.6 billion. The proceeds of the Term B Loan were funded into escrow, net of an original issue discount, on the closing of Amendment No. 3.

On February 5, 2025, upon the consummation of the Mattress Firm Acquisition, the Company borrowed $625.0 million under our Delayed Draw Term A Loan and $679.5 million under the revolving credit facility. In addition, approximately $1,592.0 million of proceeds in respect of the Term B Loan were released from escrow. The proceeds of these financings were collectively used to fund a portion of the cash consideration for the acquisition, the repayment of Mattress Firm's debt and the payment of certain fees and expenses related to the acquisition.

The Company had outstanding borrowings of $481.0 million under the revolving credit facility as of March 31, 2025. Total availability under the revolving facility was $708.3 million, after a $0.7 million reduction for outstanding letters of credit, as of March 31, 2025.

Securitized Debt

The Company and certain of its subsidiaries are party to a securitization transaction with respect to certain accounts receivable due to the Company and certain of its subsidiaries (as amended, the "Accounts Receivable Securitization"). As of March 31, 2025, there was no availability under the Accounts Receivable Securitization. While subject to a $200.0 million overall limit, the availability of revolving loans varies over the course of the year based on the seasonality of the Company's accounts receivable.