Armstrong World Industries amends and restates for $950 million revolving, term loans

By Wendy Van Sickle

Columbus, Ohio, Dec. 12 – Armstrong World Industries Inc. entered into a second amended and restated credit agreement on Dec. 7 with Bank of America, NA as administrative agent providing for a $500 million revolver and a $450 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Both parts are due to mature on Dec. 7, 2027.

At closing, the company borrowed the full term loan amount and $215 million under the revolver.

Borrowings bear interest at SOFR+ 10 bps CSA plus a margin ranging from 137.5 bps to 212.5 bps, based on consolidated net leverage ratio. The initial margin is 162.5 bps.

The revolver has a fee on unused commitments of 20 bps initially. Depending on consolidated net leverage ratio, the commitment fee can range from 20 bps to 30 bps.

The term loan will be repayable in quarterly installments of 1.25% of the total principal amount on the last day of each calendar quarter, beginning on March 31, 2024, with the balance due at maturity.

The revolver has sublimits for letters of credit and swingline loans.

The total credit facility commitments may be increased by $375 million plus certain additional amounts.

BofA Securities, Inc., Citizens Bank, NA, Manufacturers & Traders Trust Co., PNC Capital Markets, LLC, TD Bank, NA and Truist Securities, Inc. are the joint lead arrangers and bookrunners.

Citizens, Manufacturers & Traders, PNC, TD Bank and Truist are the co-syndication agents.

JPMorgan Chase Bank, NA, Bank of Nova Scotia and First National Bank of Pennsylvania are the co-documentation agents.

Proceeds may be used for working capital, capital expenditures and other lawful corporate purposes.

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

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