Foamex aims to raise $80M in new equity
By Furniture Today Staff -- Furniture Today, March 16, 2008
Linwood, Pa. — Foamex, a key supplier of foam to the furniture and bedding industries, said it intends to raise about $80 million in additional equity through a complex rights offering to existing shareholders and by swapping some debt for additional common stock.
Under terms of the rights offering, shareholders could purchase additional stock at $1.50 per share. Lenders who are part of the company's Second Lien Loan also will be allowed to acquire shares at $1.50, using the loans at par value.
"The rights offering and the second lien offering would significantly de-leverage the company," Foamex said.
The announcement caused Foamex shares to fall, although they recovered some ground late in the week.
Separately, Foamex announced it introduced four new foam products for bedding at last week's International Sleep Products Assn. show in Baltimore.
Two of the new foams, Aerus Natural and Foamex Natural Bedding, incorporate renewable resources, while DriFast Performance Cushioning is the latest addition to the DriFast line that dissipates heat and moisture more effectively.
The fourth product, Natural Latex by Foamex, is the company's first all-natural latex product.
Foamex seeks to raise $80 million in equity
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