By Devika Patel
Knoxville, Tenn., April 23 - Foamex International Inc. said in a Wednesday 8-K filing with the Securities and Exchange Commission it completed an $18.5 million initial tranche of a $20 million private placement of preferred stock, which priced Feb. 13.
On April 22, the filing said, Foamex issued 18,500 series D convertible preferred shares to D.E. Shaw Laminar Portfolios, LLC, Goldman, Sachs & Co. and Sigma Capital Associates, LLC. As consideration for buying the preferreds, the company issued 620,083 common shares, a 5% premium to the purchased shares, for no additional charge.
The company said it plans to sell a combination of series D convertible preferred shares and series E preferred shares to the investors.
D.E. Shaw was to buy about 52.23% of the shares for a maximum of $10.45 million, Goldman would buy 27.94% of the shares for a maximum of $5.59 million, and Sigma agreed to buy 19.83% of the offered shares for a maximum of $3.97 million.
The series D shares will be convertible into common stock for one year and pay dividends monthly at a rate of 4.5% per year.
The series E shares will pay dividends monthly at a rate of 9% per year.
Proceeds will be used to assist in Foamex's compliance with financial covenants under its credit agreements for 2008.
Based in Linwood, Pa., Foamex manufactures flexible polyurethane and polymer foam products.
| Issuer: | Foamex International Inc.
|
| Issue: | Series D convertible preferred stock, series E preferred stock
|
| Amount: | $20 million
|
| Warrants: | No
|
| Investors: | D.E. Shaw Laminar Portfolios, LLC (for up to $10,445,353), Goldman, Sachs & Co. (for up to $5,588,145), Sigma Capital Associates, LLC (for up to $3,966,502)
|
| Pricing date: | Feb. 13
|
| Settlement date: | April 23 (for $18.5 million, or 18,500 series D preferreds)
|
| Stock symbol: | OTCBB: FMXL
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| Stock price: | $2.97 at close Feb. 12
|
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