Armstrong launches $550 million term B at Libor plus 350-375 bps

By Sara Rosenberg

New York, Nov. 10 - Armstrong World Industries Inc. launched its $550 million 61/2-year term loan B on Wednesday with price talk of Libor plus 350 basis points to 375 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The $1.05 billion senior secured credit facility also includes a $250 million five-year revolver and a $250 million five-year term loan A.

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

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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