Armstrong cuts term B to $475 million, lifts term A to $550 million

By Sara Rosenberg

New York, March 14 - Armstrong World Industries Inc. downsized its seven-year term loan B to $475 million from $525 million and upsized its five-year term loan A to $550 million from $500 million, according to a market source.

Also, pricing on the term loan B was decreased to Libor plus 250 basis points from Libor plus 275 bps and the Libor floor was widened to 1% from 0.75%, the source said.

The term loan B still has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

The company's $1,275,000,000 credit facility (B1/BB-) also includes a $250 million five-year revolver.

Pricing on the revolver and term loan A is Libor plus 250 bps.

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

Proceeds will be used to refinance existing debt.

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

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