Sealy Industrial Partners IV Secures $150M Revolving Credit
The new agreement enhances Sealy’s financial flexibility while maintaining competitive interest terms tied to leverage ratios.
January 23, 2026
Sealy Boosts Capital Access with Revised Credit Facility Agreement
On January 15, 2026, Sealy Industrial Partners IV OP, LP took a key step to strengthen its financing strategy. The company, an indirect subsidiary of Sealy Industrial Partners IV, LP, entered into an amended and restated credit agreement with KeyBank and a group of lenders. The structure includes a $150 million revolving line of credit, with the flexibility to expand up to $500 million if needed.
This updated facility replaces a series of amendments tied to the original agreement from July 2022. It offers Sealy a revolving credit line with a five-year maturity, ending March 30, 2029. There's also a built-in option to extend the maturity by 12 months, subject to standard conditions. Two term loan tranches—Term Loan A and Term Loan B—were included in the agreement, but no funds have been drawn or committed under those terms yet. They remain available should Sealy choose to activate them later through the accordion provision.
Interest rates are based on loan type and leverage ratio. When Sealy's leverage is under 50%, it benefits from more favorable terms. For base rate loans, interest is set at the base rate plus 0.75% or 0.85%, depending on leverage. For SOFR-based loans—either Daily Simple or Term SOFR—the margin adjusts to 1.75% or 1.85%. The base rate itself is defined using a tiered formula, reflecting prevailing market benchmarks.
The company also retains flexibility on fees. There’s a tiered unused facility fee, ranging from 0.20% to 0.25% annually depending on how much remains undrawn. Additional charges could come into play if the facility is extended, expanded, or syndicated. Sealy also paid its general partner a one-time financing coordination fee equal to 0.50% of the facility size for managing the negotiation process.
All borrowings are secured by first-priority liens on the borrower’s real estate assets and equity interests. Affiliates of Sealy and its general partner have guaranteed certain carve-out provisions. The credit agreement includes a standard set of covenants tied to net worth, leverage, fixed charge coverage, and investment limits. These provisions are designed to ensure the facility remains aligned with Sealy’s long-term balance sheet targets.
Alongside this agreement, Sealy issued its Q4 2025 Operations Summary on January 22. While detailed figures weren’t included in the 8-K, the report was made available as an exhibit and marked for informational purposes only—not formally filed with the SEC.
Looking ahead, the agreement puts Sealy in a position to access flexible capital when needed and structure that capital based on changing market conditions. Forward-looking statements in the filing note that expectations are based on current assumptions and market conditions, and actual outcomes could vary. Sealy does not intend to update those projections unless required to by law.
With this new facility in place, Sealy has created a framework that supports both near-term operating needs and longer-term financing options—on terms that respond to its capital strategy.
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