Foamex amends loan, changing calculation of fixed-charge coverage ratio

By Sara Rosenberg

New York, June 17 - Foamex LP amended its credit facility, modifying the calculation of the fixed-charge coverage ratio to adjust for the impact on operating income of the already announced sale of one of its businesses on April 29 and other factors, according to an 8-K filed with the Securities and Exchange Commission.

In addition, the amendment allows the company to use a portion of the proceeds from the sale of its rubber and felt carpet cushion businesses for working capital and general corporate purposes.

The amendment was completed June 14 and is effective as of June 13.

Bank of America is the administrative agent on the deal.

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

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