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Subsequent Events
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

Acquisition of Elite Comfort Solutions, Inc. (ECS)

On January 16, 2019, we completed the acquisition of ECS for cash consideration of approximately $1,250.0. There is no contingent consideration associated with this acquisition. ECS is a leader in proprietary specialized foam technology, primarily for the bedding and furniture industries. Through this acquisition, we gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses. ECS operates as a separate business unit within the Residential Products segment.

In January 2019, we expanded the borrowing capacity under our revolving credit facility from $800.0 to $1,200.0 and correspondingly increased permitted borrowings under our commercial paper program primarily to finance the ECS transaction.

The transaction was financed through an expansion of our commercial paper program and the issuance of a $500.0 5-year term loan with our current bank group. Effective January 2019, the revolving credit facility was amended to remove the total amount of indebtedness to total capitalization covenant (as discussed in Note K). Beginning March 31, 2019, a new restrictive covenant was added that limits, as of the last day of each fiscal quarter, the leverage ratio of consolidated funded indebtedness to consolidated EBITDA (each as defined in the revolving credit facility) for the trailing four fiscal quarters to 4.25 to 1.00, with a single step-down to 3.50 to 1.00 at March 31, 2020.