Armstrong Flooring amended its asset-based lending credit facility and term loan facility. These amendments, which received unanimous support from the company’s ABL and term loan lenders, provide certain covenant modifications under the company’s ABL and term loan facilities through June 30, 2022.
In conjunction with the term loan amendment, Pathlight Capital, Armstrong Flooring’s current term loan lender, provided the company an additional $35 million aggregate principal amount of term loans to give the company financial flexibility to pursue its operational and strategic goals.
Armstrong Flooring also retained Houlihan Lokey Capital to assist with a process for the sale of the company and with the consideration of other strategic alternatives. The board of directors of the company determined this process to be in the best interests of the company and that a sale of the company or another strategic transaction are the best means to maximize value for the company’s stockholders and other stakeholders.
“These credit amendments and additional term loan funding position us well to pursue our strategic initiatives and effectively manage our operations,” Michel Vermette, president CEO of Armstrong Flooring, said. “We believe in the value and brand of Armstrong Flooring and remain firmly committed to our customers, suppliers and employees. We are also grateful for the strong support and partnership from Pathlight and our ABL credit partners as we navigate this unprecedented situation.”
