Moody’s: B1 to Armstrong World facility

Moody's Investors Service said it affirmed Armstrong World Industries, Inc.'s B1 corporate family rating and B1-PD probability of default rating, and changed the outlook to stable from negative as the company completes its tax-free spinoff of its flooring business to shareholders, in order to focus on ceiling and related products.

In related rating actions, Moody's assigned a B1 rating to the company's senior secured bank credit facility.

Proceeds from the proposed bank credit facility, cash on hand and a $50 million dividend from Armstrong Flooring Inc. will be used to replace Armstrong's existing bank credit facility, at which time the ratings under this facility will be withdrawn.

Armstrong's proposed bank credit facility will consist of a $200 million senior secured revolving credit facility expiring 2021, a $600 million senior secured term loan A maturing 2021 and a $250 million senior secured term loan B maturing 2023. The company's capital structure also has a $50 million accounts receivable securitization facility (unrated) and about $35 million of industrial revenue bonds.

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