Armstrong Flooring Expands Capital Resources and Liquidity

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.

Contacts

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, INC.

Contacts

Investors:

Doug Bingham
SVP, Chief Financial Officer
717-672-9300
IR@armstrongflooring.com

Media:

Alison van Harskamp
Director, Corporate Communications
aficorporatecommunications@armstrongflooring.com