Armstrong plans $1.05 billion credit facility for refinancing

By Sara Rosenberg

New York, Feb. 3 – Armstrong World Industries Inc. expects to get a new $1.05 billion credit facility in conjunction with and subject to the completion of the previously announced planned separation of its flooring business, Armstrong Flooring Inc., according to a news release.

The credit facility is anticipated to include a $200 million undrawn revolver.

Proceeds will be used to refinance an existing credit facility.

Subject to final terms and conditions, the company expects the refinancing to lower interest expense and lengthen maturities.

Armstrong intends to use cash on hand and $50 million from a dividend from Armstrong Flooring to reduce its total debt outstanding.

In a 10-12B/A filed with the Securities and Exchange Commission on Tuesday, Armstrong Flooring revealed that it plans to get a $225 million revolving senior credit facility in connection with the separation and will draw on that revolver to fund the dividend to Armstrong.

Armstrong Flooring is negotiating and initiating the syndication process with the lead bank on the revolver, and at closing anticipates having about $100 million drawn at a rate of Libor plus 150 basis points.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors and ceiling systems. Armstrong Flooring is a Lancaster, Pa.-based producer of flooring products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.