Benzinga | Dec 31, 2021 04:16PM EST

Armstrong Flooring Shares Spike Higher; Co Says Received $35M Capital Infusion, Announces Process For Sale Of Co And Consideration Of Other Strategic Alternatives

Armstrong Flooring, Inc. (NYSE:AFI) a leader in the design and manufacture of innovative flooring solutions, announced it has successfully amended its ABL Credit Facility and Term Loan Facility today. 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 LP, the Company'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.

The Company also announced it retained Houlihan Lokey Capital Inc. 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," said Michel Vermette, President and Chief Executive Officer. "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."

Further information regarding the ABL Amendment, the Term Loan Amendment and related matters will be provided in a Current Report on Form 8-K that the Company expects to file with the U.S. Securities and Exchange Commission on Monday, January 3, 2022.