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EXHIBIT 99.1
[SIMMONS LOGO]
FOR IMMEDIATE RELEASE
Contact: William S. Creekmuir
Simmons Company
770-512-7700
SIMMONS COMPANY AMENDS ITS SENIOR CREDIT AGREEMENT
Atlanta, Georgia, (January 19, 2001)---- Simmons Company announced
today that it has completed a third amendment to its Senior Credit Agreement.
The amendment provides for more favorable financial covenant tests for the next
three fiscal quarters commencing with the year ended December 30, 2000. The
amendment was prompted by the Company's recently announced settlement with
Serta, Inc.
Simmons' Executive Vice President and Chief Financial Officer William
S. Creekmuir said, "The approval of the amendment by the lending group, led by
Goldman Sachs Credit Partners L.P. and UBS AG, represents a vote of support by
the lending group in Simmons' management team and confidence in our operating
plan. They were encouraged by the progress Simmons made in 2000 and where the
Company is headed." He added, "At current borrowing levels, the Company's total
interest expense will only increase marginally." At December 30, 2000, the
Company had $157.9 million outstanding under the senior credit agreement, down
$23.1 million and $8.1 million from September 30, 2000 and December 25, 1999,
respectively. Interest spreads under the credit agreement will be reduced in the
future as the Company continues to reduce its debt levels.
Maker of Beautyrest(R), BackCare(R), DreamScapes(TM), and Deep
Sleep(R), Atlanta-based Simmons Company employs more than 3,000 people and
operates 18 plants throughout the United States and Puerto Rico. Simmons is
committed to helping consumers attain a higher quality of sleep and supports its
mission through a Better Sleep Through Science(TM) philosophy, which includes
developing superior mattresses and promoting a sound, smart sleep routine. For
more information, consumers and customers can visit the Company's website at
www.simmons.com.
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, such as, among others, statements relating to future operating results and
customer acceptance of our products. Such statements are dependent on a number
of factors, which could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Such factors include the
Company's ability to continue its sales growth and further improve its
profitability, in addition to those factors identified from time to time in the
Company's required filings with the U.S. Securities and Exchange Commission.
