Sleep Number Corporation has entered into a debtor-in-possession (DIP) credit agreement to secure up to $260 million in financing to support its operations during its Chapter 11 bankruptcy proceedings. The facility, which received interim court approval on June 15, 2026, provides liquidity through a combination of new loans and the conversion of existing prepetition debt into the new facility.
Key Details
- Financing Structure: The DIP financing totals up to $260 million, comprised of (i) $65 million in new money superpriority senior secured term loans and (ii) $195 million in roll-up loans, which convert and exchange existing secured obligations into the DIP facility.
- Terms & Maturity: The loans have a scheduled maturity date of September 16, 2026, and will bear interest at a rate of either SOFR plus 8.00% or a base rate plus 7.00% per annum.
- Court Approval: The U.S. Bankruptcy Court for the Southern District of New York granted interim approval for the financing on June 15, 2026. A final hearing is scheduled for July 9, 2026.