Armstrong launches $250 million add-on term loan B at OID of 98½

By Sara Rosenberg

New York, March 13 - Armstrong World Industries Inc. launched its $250 million add-on term loan B (BB-) on Tuesday with an original issue discount of 981/2, according to a market source.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor, in line with existing term loan pricing.

Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Barclays Capital Inc. are the lead banks on the deal.

Proceeds will be used to help fund a special cash dividend of about $500 million, or about $8.55 per share.

The special cash dividend is conditioned on the company's receipt of consents from current lenders and financing.

It is expected that the dividend will be paid before May 1.

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

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