Armstrong has announced plans to refinance its existing credit agreement in conjunction with and subject to the completion of the planned separation of the company’s flooring business.
Subject to final terms and conditions, the company anticipates achieving lower interest expense, longer maturities and several minor technical improvements and would intend to use cash on hand, as well as $50 million from a dividend from Armstrong Flooring Inc. (AFI) anticipated in connection with the separation, to reduce total debt outstanding.
The new credit agreement is expected to be for $1.05 billion and includes $200 million from an undrawn revolving credit facility, according to the company. Armstrong anticipates concluding the refinancing transaction contemporaneously with the completion of the separation transaction. Completion of the proposed refinancing is subject to a number of factors, including market conditions and the company’s financial condition and results of operations. AFI’s ability to pay a dividend to the company similarly is subject to a number of factors, including the availability of funds for this purpose under applicable law.
For more information, visit armstrong.com.