Daily News: February 11, 2016

Update: BofA Merrill Lynch Leads $1.05B Armstrong World Industries Refi

Jennifer Johnson, senior manager, Global Corporate Communications and Public Affairs at Armstrong World Industries, confirmed that Bank of America Merrill Lynch is leading the company’s refinancing of its current credit agreement. J.P. Morgan and Citibank are acting as joint lead arrangers for the transaction, which is contingent upon the planned spinoff of Armstrong’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 (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. The company anticipates concluding the refinancing transaction concurrently with the completion of the separation transaction.

Lancaster, PA-based Armstrong said the completion of the company’s 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 variety of factors, including the availability of funds for this purpose under applicable law.