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THL Bedding, Mexico's Homex Plan IPOs

June 09, 2004|From Times Wire Services

Simmons Co., one of the nation's largest mattress companies, Tuesday said its parent company, THL Bedding Holding Co., planned to go public in an initial stock offering.

The number of shares to be offered and the price range have not been determined, according to a filing with the Securities and Exchange Commission.

The proposed plan calls for shares to be sold by THL Bedding and existing stockholders, the filing said. As part of the offering, THL Bedding plans to change its name to Simmons Co.

Atlanta-based Simmons makes mattresses under brand names including Beautyrest, BackCare and Deep Sleep. It sells its products through more than 11,000 furniture outlets, department stores and specialty shops.

For 2003, Simmons recorded a net loss of $41.3 million on sales of $806 million.

Also Tuesday, Mexico's Homex filed with the Securities and Exchange Commission to raise up to $160 million in an initial public offering, making it the third Mexican home builder to tap equity markets within a year.

Homex will offer 10.1 million American depository shares, representing 60.6 million common shares, at an estimated $14.50 to $15.80 per depository share.

Homex will sell 48 million common shares. The remaining 12.6 million shares will be offered by shareholders, including the founding De Nicolas family.

Citigroup Inc. and Merrill Lynch & Co. will underwrite the IPO, which is expected to close June 28, Homex said in a preliminary offering document filed with the SEC.

Homex, based in the city of Culiacan in the northwestern state of Sinaloa, focuses on building entry-level and middle-income housing in Mexico.

Homex said it planned to use proceeds to acquire $68.9 million of land, to repay about $28.3 million of debt and to conduct general corporate business.

The company said revenue for 2003 was $250.8 million, operating income $47.9 million and net income $27.9 million.

Homex plans to list its depository shares on the New York Stock Exchange under the symbol HXM and to list the common shares on the Mexican Stock Exchange under the symbol HOMEX.

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