Mattress Firm Approved to Borrow $525M to Fund Bankruptcy Exit

Mattress Firm Inc., the bed retailer of Steinhoff International Holdings NV, won court approval to borrow $525 million to fund its exit from bankruptcy.

Mattress Firm would get a $125 million asset-backed loan and a $400 million term loan, under financing package approved by U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware Oct. 29.

Sontchi also approved various fees associated with the exit financing; those fees include about $3.2 million associated with the ABL and $22.3 million associated with the term loan, Mattress Firm lawyer William A. Evanoff said in court.

The company also said its parent, Steinhoff, will meet ...