Pegasus Home Fashions, Inc.

Client Profile

Founded in 1990 and headquartered in New Jersey, Pegasus is one of the largest manufacturers and distributors of bedding products in the United States. Specializing in the manufacture of fiber and foam-filled pillows, the Company also wholesales a selection of ancillary bedding basics such as mattress pads, toppers, and pillow protectors. Products are marketed under the Company’s proprietary brands, including EZ Dreams®, ISO-Pedic®, America’s Pillow, and Essence of Bamboo, among others, as well as a broad portfolio of leading licensed and private label brands. Pegasus serves well-known customers within the mass-market, warehouse club, and specialty channels.

Situation

Following its exit from bankruptcy in late 2023, Pegasus sought to maximize its borrowing capacity with a new lender to fund everyday working capital needs and provide sufficient access to liquidity for its growth plans.

Solution

SSG was retained to help refinance the Company’s existing debt and secure additional capital to fund future business plans. SSG leveraged its broad network of capital providers to solicit interest from a targeted list of traditional and alternative lenders. After receiving numerous competitive term sheets, Ares Management, LLC was determined to be the best capital partner for Pegasus. SSG’s deep market knowledge and execution capabilities resulted in a solution that maximized debt capacity and provided the availability necessary to finance the Company’s strategic growth initiatives.