Foamex International — Debt Investor Presentation (March 2008)
19 slides from Foamex International's debt investor presentation, Mar 12, 2008
Slide 1: Amendment and Consent Request
Amendment and Consent Request March 2008
Slide 2: Banc of America Securities disclaimer
These materials have been prepared by Banc of America Securities LLC (“BAS”) for the BAS client or potential client to whom such materials are directly addressed and delivered (the “Company”) in connection with an actual or potential mandate or engagement and may not be used or relied upon for any p
Slide 3: Forward-looking statements
This presentation contains, and oral statements made from time to time by representatives of the Company may contain forward-looking statements within the meaning of Section 27Aof the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward
Slide 4: Call Participants
Call Participants Foamex: Jack Johnson Chief Executive Officer Bob Larney Chief Financial Officer Andrew Prusky VP, Deputy General Counsel George Karpinski SVP, Treasurer Banc of America Securities: Jeff McLane Principal David Izard Principal 4
Slide 5: Events Since Close
Events Since Close u Management monetized non-core assets to reduce fixed costs and pay-down debt l Sold investment in Asia JV in the 3rd quarter of 2007 for approximately $23 million l Sold the three stand-alone carpet cushion plants in the 3rd quarter of 2007 for approximately $10 million u Mainta
Slide 6: Executive Management Team
Executive Management Team Changes in operating management bring new growth model and leadership to Foamex u Jack Johnson was named CEO in April 2007 and President in August 2007 u Bob Larney was named CFO in August 2007 u Operating management with extensive industry knowledge includes l James B. Gam
Slide 7: Continued Rationalization of Operations
Continued Rationalization of Operations Consolidation of facilities reduces fixed costs and future capital expenditure requirements u Consolidated North American manufacturing sites from 56 at December 2003 to 32 at December 2007 u Reduced North American employee base over 30% from approximately 5,0
Slide 8: Foamex Today
Foamex Today Foamex Market Strengths u Leading manufacturer and distributor of flexible polyurethane and advanced polymer foam products in North America, primarily serving the bedding, furniture, automotive, electronics and carpet industries u Recognized technology leader with over 225 patents world
Slide 9: Financial Highlights for 2007
Financial Highlights for 2007 Continued focus on cash generation despite market softness u Total net debt as of December 30, 2007 was approximately $529 million and approximately $96 million lower since February 2007 ● Cash was generated through asset sales, operating cash flows and balance sheet im
Slide 10: Amendment Overview
Amendment Overview u Company could raise $238 million of equity capital which will be used to delever the Company (the “Transaction”) consisting of the following components: l A rights offering (the “Rights Offering”) to the Company’s stockholders to purchase common stock l An offer to all Second Li
Slide 11: Amendment Overview - The Rights Offering
Amendment Overview - The Rights Offering u Proposed Rights Offering would be made to all stockholders to purchase their pro rata amount of common stock at the subscription price l Company expects it will receive equity commitments of approximately $80 million from certain large stockholders (the “Co
Slide 12: Amendment Overview - The Second Lien Offer
Amendment Overview - The Second Lien Offer u Simultaneously with the Rights Offering, the Company intends to make the Second Lien Offer to all Second Lien Term Loan lenders l Offer will be to assign loans at par, at the subscription price in the Rights Offering u To protect the Company’s NOLs, the C
Slide 13: Proposed Transaction Structure - Maximum Case
Proposed Transaction Structure - Maximum Case 13
Slide 14: Proposed Transaction Structure - Anticipated Case
Proposed Transaction Structure - Anticipated Case 14
Slide 15: Proposed Transaction Structure - Minimum Case
Proposed Transaction Structure - Minimum Case 15
Slide 16: Proposed Schedule of Rights Offering and Second Lien Offering
Proposed Schedule of Rights Offering and Second Lien Offering u Expect closing of offerings in Q2 2008 Week Assuming No SEC Review Assuming SEC Review 1 · Execute the Bank Consent/Amendment · Execute the Bank Consent/Amendment 3 · File the S-1s with the SEC · File the S-1s with the SEC 4 · Notificat
Slide 17: Consent Requests
Consent Requests u Consent of the first lien lenders to confirm the amendment for the Second Lien Credit Agreement u Consent of the second lien lenders to amend the Second Lien Credit Agreement to permit the assignment of second lien loans for equity, and the extinguishment of the second lien loans
Slide 18: Transaction Highlights / Benefits
Transaction Highlights / Benefits u Allows second lien loans to be converted into equity u Significant equity holders would be required to commit $80 million of new equity (combination of cash and second lien loan conversion) u Improves credit profile of the Company u Significant deleveraging of the
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