FXI Holdings reported a 35% year-over-year increase in EBITDA for the third quarter of 2020, though revenue declined, according to two sources familiar with the matter.
The One Rock Capital and Bain Capital-owned foam maker (formerly Foamex) booked USD 69m of pro forma adjusted EBITDA for the quarter, up from USD 51.3m in 3Q19, the sources said.
Revenue was USD 340m, up 50% sequentially from 2Q20, but down from USD 358.4m last year, the sources added. The results are pro forma the acquisition of Innocor, which closed in February.
Management said on yesterday’s call (24 November) that the company benefited from strong demand during the quarter, especially in its auto business, the sources said. However, hurricanes impacted the supply of chemicals, leading demand to exceed FXI’s production, they added.
As of 30 September, liquidity stood at USD 244m, through USD 75m of cash and an undrawn USD 235m ABL due 2025 with a USD 169m borrowing base.
FXI backed the Innocor purchase with proceeds of a USD 775m 12.25% senior secured note due 2026, which it placed in October 2019. The pricey notes, which become callable in October 2022, traded yesterday at 113 to yield 7.917%, up from trades at 108.53 to yield 9.634% on 9 November.
The acquisition increased the company’s exposure to bedding and lowered its concentration to the transportation and technical space, as reported.
The company’s USD 525m 7.875% senior secured notes due 2024 traded yesterday at 100.25 to yield 7.728%, up from trades at 97.25 to yield 8.708% on 10 November, according to MarketAxess.
FXI did not respond to a request for comment.