Tempur Sealy International (TPX) said Friday it has closed a senior secured term loan B financing facility worth $1.6 billion to help finance its acquisition of Mattress Firm Group.

The term loan B facility is set to mature in seven years, the company said. Tempur Sealy said it plans to use proceeds from the new loan, along with cash on hand and proceeds from other debt to help fund its acquisition of Mattress Firm Group.

Proceeds from the term loan B facility were funded into escrow and will be released concurrently with the closing of the Mattress Firm acquisition, the company said, adding it has amended its 2023 credit agreement to include the new amount and to extend the availability of its $605 million delayed draw term A commitments that closed this year.

Shares of Tempur Sealy were up 1% in recent Friday premarket activity.

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