Sleep Number Corporation (NASDAQ: SNBR) announced it has reached an agreement with lenders providing $55 million in additional liquidity, including a $25 million term loan, and relief on certain financial and liquidity covenants.

The $25 million term loan accrues interest at one-month term SOFR plus 8% annually and matures on June 30, 2026. The agreement waives the company's $30 million minimum liquidity covenant until the first week after July 1, 2026, and provides forbearance from existing lenders on other financial covenants.

"We are pleased to have reached an agreement with our lending group that provides covenant relief and incremental capital to support our new product launch and marketing plans as we enter the Memorial Day selling season," said Amy O'Keefe, Sleep Number's chief financial officer.

The Minneapolis-based mattress company launched what it describes as its largest product reset in nearly a decade, beginning with ComfortMode in late January and a broader portfolio refresh in late March. The company also rolled out new marketing creative and launched its first major integrated campaign in several years.

Sleep Number reported that performance for the quarter remains in line with expectations disclosed on its previous earnings call. The company will release first quarter results for the period ending April 4, 2026, before market open on May 12, 2026.

The agreement includes milestones related to Sleep Number's efforts to finalize a strategic transaction aimed at maximizing enterprise value and providing full payment of obligations to lenders. Additional details are available in the company's Current Report on Form 8-K filed with the Securities and Exchange Commission.

Sleep Number operates approximately 600 stores nationwide and sells mattresses, bases, bedding and furniture exclusively through its retail locations and online platform.