Armstrong sets Wednesday launch for $1.05 billion credit facility

By Sara Rosenberg

New York, Nov. 9 - Armstrong World Industries Inc. has scheduled a bank meeting for Wednesday morning to launch its proposed $1.05 billion senior secured credit facility, according to a market source.

Bank of America, Barclays and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

The facility consists of a $250 million five-year revolver, a $250 million five-year term loan A and a $550 million 61/2-year term loan B, the source said.

Proceeds will be used to help fund a special cash dividend of $13.74 per share to common shareholders, or about $800 million in the aggregate, and refinance an existing $430 million credit facility.

Other funds for the dividend and refinancing will come from cash on hand.

Completion of the transaction is expected by year-end.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

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