Mattress Firm Group Plans NYSE Return After Emerging From Bankruptcy
Mattress Firm Group filed for a public offering of shares approximately six years after it was privatized by South African retailer Steinhoff International and filed for Ch. 11 bankruptcy protection in 2018.
Mattress Firm, based in Houston, Texas, previously filed a draft confidential registration statement with the United States Securities & Exchange Commission and announcement he was exploring a potential IPO in September 2021.
Barclays Capital, Goldman Sachs and Jefferies Group act as joint bookkeepers, while Guggenheim Securities, Piper Sandler, Truist Securities and UBS Investment Bank are the bookkeepers. Mattress Firm has applied to list its shares on the New York Stock Exchange under the symbol MFRM.
Matress Firm is owned by Steinhoff, which controls 50.1% of its capital and which will retain a stake in the capital of the public entity. Other major shareholders of Mattress Firm include CEO John Eck, CFO Maarten Jager and retail director Jody Putnam.
The $ 3.40 billion (£ 2.5 billion) Steinhoff at the time paid for the shares of Mattress Firm at a premium of 115% over its price per share, or $ 64 per share.
Mattress Firm operated 2,353 outlets as of September 28, compared to 2,419 at end-2020 and 2,535 in 2019. Free cash flow was $ 445.9 million through end-2021, compared to a deficit of $ 50.4 million in 2019, after filing for bankruptcy.
Mattress Firm reported an annual loss of $ 165.1 million for the fiscal year ending Sept. 28 on revenue of $ 4.39 billion. The company reported profit in fiscal 2019 of $ 125.6 million on revenue of $ 3.26 billion.
34.9% growth in turnover
Despite a loss of money in 2021, year-over-year revenue represents revenue growth of 34.9%.
Mattress Firm cited retail outlet closures linked to Covid-19, as well as increased costs associated with imposing security measures at retail outlets and distribution centers.
“Each of these necessary actions significantly increased our operating costs, including, but not limited to, the costs incurred to implement operational changes.The company said.
Mattress Firm has approximately $ 1.99 billion in long-term debt, including a new syndicated term credit facility totaling $ 1.25 billion led by Barclays Capital, due September 2028, which has was closed on September 24.
Read more: Mattress Firm files confidential prospectus with SEC
Ready to start?
The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade a CFD.
You can still benefit if the market moves in your favor, or suffer a loss if it moves against you. However, with traditional trading, you enter into a contract to exchange legal ownership of individual stocks or commodities for cash, and you own it until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the total value of the CFD trade to open a position. But with traditional trading, you buy the assets for the full amount. In the UK there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs come with overnight costs to hold trades (unless you’re using 1 to 1 leverage), making them more suitable for short-term trading opportunities. Stocks and commodities are more normally bought and held longer. You could also pay a commission or brokerage fees when buying and selling assets directly and you would need a place to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for informational purposes only and should not be construed as investment advice. Any opinion that may be provided on this page does not constitute a recommendation of Capital Com or its agents. We make no representations or warranties about the accuracy or completeness of the information provided on this page. If you rely on the information on this page, you do so entirely at your own risk.