Foamex amends to allow for second-lien loan, common stock exchange

By Sara Rosenberg

New York, March 28 - Foamex International Inc. amended its credit facility, allowing for the exchange of second-lien loans at par for common stock, according to a news release.

Now that the amendment is completed, the company is positioned to proceed with its previously announced rights offering to all of its stockholders.

If completed, the second-lien offering and the rights offering would significantly deleverage the company.

The offerings are expected to be completed in the second quarter.

Foamex is a Linwood, Pa.-based manufacturer of flexible polyurethane and advanced polymer foam products.

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