Armstrong firms spread on $550 million term B at Libor plus 350 bps

By Sara Rosenberg

New York, Nov. 22 - Armstrong World Industries Inc. finalized pricing on its $550 million 61/2-year term loan B at Libor plus 350 basis points with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

By comparison, at launch, the term loan B was talked at Libor plus 350 bps to 375 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.

Also, 101 soft call protection for one year was added to the B loan, the source said.

The $1.05 billion senior secured credit facility (B1/BB-) also includes a $250 million five-year revolver and a $250 million five-year term loan A, with both of these tranches priced at Libor plus 300 bps.

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 for about $800 million and to 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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