Armstrong World Industries (Lancaster, Pa.) will refinance its credit agreement once it successfully spins off its flooring business next month, according to a statement from the company.
The new credit agreement is expected to be for $1.05 billion. It includes $200 million from an undrawn revolving credit facility, Armstrong said.
The refinanced credit agreement will achieve lower interest expenses, longer maturities and “several minor technical improvement,” the statement said.
The company plans to use cash on hand and a one-time $50 million dividend from the flooring business spin-off, officially called Armstrong Flooring, to reduce the company’s outstanding debt.
Armstrong Flooring will pay Armstrong World Industries $5.62 million annually in rent to stay in its current location on the parent company’s campus.
