SSG Places Debt Financing for Pegasus Home Fashions

SSG Capital Advisors, LLC (“SSG”) served as the investment banker to Pegasus Home Fashions, Inc. and its affiliated entities (collectively, “Pegasus” or the “Company”) in the private placement of a $25 million revolving credit facility with Ares Management, LLC. The financing enabled Pegasus to refinance existing indebtedness and will provide additional capital for growth. The transaction closed in July 2024.

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.

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.

Ares Management, LLC is a global alternative investment manager operating in the credit, private equity and real estate markets. Through its global credit platform, Ares seeks to invest in middle-market companies by leveraging its broad financing capabilities.

Other professionals who worked on the transaction include:

• Adam C. Harris, Gregory D. Ruback, and Isaac G. Inkeles of Schulte Roth & Zabel LLP, counsel to Pegasus Home Fashions, Inc.; and

• Jason I. Miller, Michael Barocas, Matthew T. Callahan, and Nathaniel J. Norman of Otterbourg P.C., counsel to Ares Management, LLC.

About SSG Capital Advisors, LLC

SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. We provide our clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation, and strategic advisory. SSG has a proven track record of closing over 450 transactions in North America and Europe and is a leader in the industry.