Armstrong readies launch of $250 million term loan B for Tuesday

By Sara Rosenberg

New York, Feb. 22 – Armstrong World Industries Inc. is set to hold a lender call at 1 p.m. ET on Tuesday to launch a $250 million seven-year term loan B, according to a market source.

Bank of America Merrill Lynch is the left lead bank on the deal.

The company’s $1.05 billion credit facility (B1/BB+) also includes a $200 million revolver and a $600 million term loan A, the source said.

Proceeds will be used to refinance an existing credit facility in conjunction with and subject to the completion of the previously announced planned separation of the company’s flooring business, Armstrong Flooring Inc.

Subject to final terms and conditions, the company expects the refinancing to lower interest expense and lengthen maturities.

Armstrong intends to use cash on hand and $50 million from a dividend from Armstrong Flooring to reduce its total debt outstanding.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors and ceiling systems. Armstrong Flooring is a Lancaster, Pa.-based producer of flooring products.

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