Foamex Provides Update on Debt Reduction and Growth Initiatives
Foamex International Inc. (OTC:FMXL), a leading producer of polyurethane foam-based solutions and specialty comfort products, held its 2008 Annual Meeting of Stockholders on July 18, 2008 in Linwood, PA. At the meeting, Eugene I. Davis, Robert B. Burke, Seth Charnow, Thomas M. Hudgins, John G. Johnson, Jr., David J. Lyon, and Gregory E. Poling were elected to serve as directors for a term of one year.
The Company also announced that total debt as of June 29, 2008 was approximately $417.6 million, after giving effect to the previously announced $100 million put option to certain stockholders. The Company has already received assignments of second lien term loans in the amount of $13 million in connection with its second lien term loan offering, which expires July 24, 2008. The second term lien loan offering and rights offering are anticipated to close on July 30, 2008.
At the Annual Meeting, Jack Johnson, President and Chief Executive Officer of Foamex reviewed the Company’s growth plans for the future. Highlighted in the discussion was the further expansion of the Company’s footprint in Asia. Mr. Johnson also discussed the establishment of retail sales for its new sleep accessories product lines, including memory foam pillows and mattress toppers. He noted that the Company has expanded its Auburn, IN fabrication and packaging operations to handle this downstream big box market. In addition, he commented on the successful launch of several sustainable specialty foam products for home furnishings, explaining that the Company is leveraging its patented VPF technology and proprietary formulations utilizing renewable plant-based ingredients. Finally, he outlined several current and upcoming key product launches for the electronics, medical, and industrial markets. Mr. Johnson concluded by stating that: “All of these growth initiatives will enhance shareholder value.”
About Foamex International Inc.
Foamex, headquartered in Linwood, PA, is a leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. For more information visit the Foamex web site at http://www.foamex.com.
This press release contains, and oral statements made from time to time by representatives of the Company may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, future operating results, operating efficiencies, future market prices and margins, future energy costs, future government and legislative action, future cost savings, future benefit costs, the Company’s liquidity and ability to finance its operations, and other statements that are not historical facts that involve certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Additional information that could cause actual results to vary materially from the results anticipated may be found in the Company’s most recent Form 10-K and other reports filed with the Securities and Exchange Commission. Readers should be aware that any forward-looking statement made in this press release or elsewhere by the Company speaks only as of the date on which it was made, and the Company disclaims any obligation or intent to update any of the factors listed above or forward-looking statements.