Armstrong flooring, inc. enters into first amendment to credit agreement

On november 1, 2019, armstrong flooring, inc. (the “company”) entered into a first amendment to credit agreement, by and among the company, as borrower, the guarantors named therein, the lenders party thereto and bank of america, n.a., as administrative agent, collateral agent, l/c issuer and swingline lender. the amendment amends that certain credit agreement, dated as of december 31, 2018, by and among the company, the guarantors named therein, the lenders party thereto and bank of america, n.a., as administrative agent, collateral agent, l/c issuer and swingline lender to, among other things, decrease the size of the credit facility to $100 million, consisting of a $75 million revolving facility and a $25 million term loan facility (the “amended credit facility”), and converts term loans outstanding in excess of $25 million to revolver borrowings. borrowings under the amended credit facility will bear interest at a rate per annum equal to, at the company’s option, a base rate or a eurodollar rate equal to the london interbank offered rate (“libor”) for the relevant interest period, plus, in each case, an applicable margin determined in accordance with the provisions of the amendment. the base rate will be the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of bank of america, n.a., and (c) one month libor plus 1.00%. the applicable margin for borrowings under the amended credit facility will be determined based on the company’s consolidated net leverage ratio (as defined in the amendment) and will range from 0.75% to 2.00% with respect to base rate borrowings and 1.75% to 3.00% with respect to eurodollar rate borrowings. in addition to paying interest on outstanding principal under the amended credit facility, the company will pay a commitment fee to the lenders under the amended credit facility with respect to the unutilized revolving commitments thereunder at a rate ranging from 0.15% to 0.35% depending on the company’s consolidated net leverage ratio.
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