Ares Management and Teachers’ Private Capital, owner of mattress maker Serta, have agreed to buy Simmons Bedding Co. from THL Partners. The deal would include Simmons filing for a prepackaged Chapter 11 bankruptcy, which would reduce its debt from $1 billion to around $450 million. The actual sale would be valued at $760 million, including equity from the purchasers and both debt and equity from certain existing Simmons lenders. Serta and Simmons would continue to be operated independently.
ComVest Group has agreed to acquire Westport, Conn.-based package delivery company Velocity Express Corp., as part of a prepackaged bankruptcy process. TH Lee Putnam Ventures held around 25 percent of Velocity Express’ common stock, as of May 1.
JLL Partners and Warburg Pincus are facing an investor lawsuit in opposition to their plan to recapitalize Builders FirstSource Inc. (Nasdaq: BLDR). The two firms currently hold a combined 49.9 percent stake in the residential construction company, and have agreed to botha $75 million rights offering at $2 per share and a debt-for-equity swap. The suit claims the recap would not be in the best interest of the company or its other shareholders.
Stallion Oilfield Services Ltd., a provider of oilfield services backed by The Carlyle Group, missed several debt-related interest payments in August, and has recently been downgraded to a ‘D’, or default, rating by both Moody’s Investor Services and Standard & Poor’s.