Armstrong Flooring Expands Capital Resources and Liquidity
June 23 2020 - 4:15PM
Business Wire
- Strengthens Financial Flexibility To Execute
Strategic Roadmap -
Armstrong Flooring, Inc. (NYSE: AFI) (“Armstrong Flooring” or
the “Company”), a leader in the design and manufacture of
innovative flooring solutions, today announced that it 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.
“The amended facility and expansion of our capital resources
equips Armstrong Flooring with additional liquidity to navigate the
current environment,” said Michel Vermette, President and Chief
Executive Officer. “During the month of May 2020, we were
encouraged to see our preliminary net sales increase sequentially
compared to April. With our strengthened balance sheet and enhanced
flexibility, we are now better positioned to execute our business
transformation and invest strategically in market opportunities as
the economic recovery gains momentum. We appreciate our lending
partners’ support for Armstrong Flooring and their confidence in
our strategic roadmap."
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.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the
design and manufacture of innovative flooring solutions.
Headquartered in Lancaster, Pennsylvania, the Company safely and
responsibly operates 8 manufacturing facilities globally, working
to provide the highest levels of service, quality and innovation to
ensure it remains as strong and vital as its 150-year heritage.
Learn more at www.armstrongflooring.com.
Forward Looking Statements
Disclosures in this release and in our other public documents
and comments contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Those
statements provide our future expectations or forecasts and can be
identified by our use of words such as “anticipate,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” “outlook,”
“target,” “predict,” “may,” “will,” “would,” “could,” “should,”
“seek,” and other words or phrases of similar meaning in connection
with any discussion of future operating or financial performance.
Forward-looking statements, by their nature, address matters that
are uncertain and involve risks because they relate to events and
depend on circumstances that may or may not occur in the future. As
a result, our actual results may differ materially from our
expected results and from those expressed in our forward looking
statements. A more detailed discussion of the risks and
uncertainties that could cause our actual results to differ
materially from those projected, anticipated or implied is included
in our reports filed with the U.S. Securities and Exchange
Commission. Forward-looking statements speak only as of the date
they are made. We undertake no obligation to update any
forward-looking statements beyond what is required under applicable
securities law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200623005782/en/
Investors: Doug Bingham SVP, Chief Financial Officer
717-672-9300 IR@armstrongflooring.com
Media: Alison van Harskamp Director, Corporate Communications
aficorporatecommunications@armstrongflooring.com
Armstrong Flooring (NYSE:AFI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Armstrong Flooring (NYSE:AFI)
Historical Stock Chart
From Apr 2023 to Apr 2024