Armstrong launches $250 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 23 – Armstrong World Industries Inc. launched on Tuesday its $250 million seven-year term loan B with price talk of Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

Commitments are due at noon ET on March 1, the source said.

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.

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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