Armstrong Flooring Expands Capital Resources & Liquidity
Lancaster, PA, June 25, 2020-Armstrong Flooring has amended its senior secured asset-based revolving credit facility ("ABL Facility"), modifying the facility size to $90 million with a maturity date in December 2023 and an interest rate on borrowings based on LIBOR with a floor of 1.00% plus a spread of 2.75% to 4.00%. The amendment provides the company with enhanced flexibility by adjusting the covenants to terms more appropriate in the current circumstances, among other changes, subject to the terms and conditions of the ABL Facility amendment.
Additionally, the company has entered into a new $70 million term loan facility ("Term Loan") to further strengthen its capital resources. Borrowings under the new Term Loan will bear interest at a rate of LIBOR with a floor of 1.50% plus a spread of 12.0%. The Term Loan matures in June 2025 and will be available for business transformation and growth initiatives, working capital needs and general corporate purposes.
Following the transactions, the company had total liquidity of approximately $97 million, including cash plus availability under its credit facilities, providing the Company with ample financial resources to more effectively execute its near term and long-term objectives.
Bank of America acted as sole Lead Arranger for the ABL Facility and Pathlight Capital acted as sole Lead Arranger for the Term Loan. Jefferies LLC acted as a financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Armstrong Flooring.