ARMSTRONG FLOORING ANNOUNCES CHANGES TO ABL AND TERM LOAN FACILITIES; RECEIVES DOLLAR 35 MILLION CAPITAL INFUSION; ANNOUNCES THE COMPANY’S SALE PROCESS AND CONSIDERATION OF OTHER STRATEGIC ALTERNATIVES


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LANCASTER, Pennsylvania., December 31, 2021 / PRNewswire / – Armstrong Flooring, Inc. (NYSE: AFI), a leader in the design and manufacture of innovative flooring solutions, today announced that it has successfully modified its ABL credit facility and loan facility in the long term. These amendments, which received the unanimous support of ABL’s and Company’s term loan lenders, provide for certain modifications to covenants under the ABL facilities and the Company’s term loan through June 30, 2022.

Along with the modification of the term loan, Pathlight Capital LP, the Company’s current term loan lender, provided the Company with a $ 35 million principal total term loans to give the Company the financial flexibility necessary to pursue its operational and strategic objectives.

The Company also announced that it has retained the services of Houlihan Lokey Capital Inc. to assist it in the process of selling the Company and in examining other strategic alternatives. The Board of Directors of the Company has determined that this process is in the best interest of the Company and that a sale of the Company or other strategic transaction is the best way to maximize value for the Company’s shareholders and employees. other stakeholders.

“These credit changes and the funding of additional term loans position us well to continue our strategic initiatives and effectively manage our operations,” said Michel Vermette, President and CEO. “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 United States Securities and Exchange Commission on. Monday, January 3, 2022.

About Armstrong Flooring

Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the design and manufacture of innovative flooring solutions that inspire beauty wherever your life takes place. Based at Lancaster, PennsylvaniaArmstrong Flooring continually builds on its resilient 150-year heritage by fulfilling its mission of creating a stronger future for its customers through adaptive and inventive solutions. The company safely and responsibly operates seven manufacturing facilities around the world, striving to provide the highest levels of service, quality and innovation to ensure it remains as strong and vital as its heritage. 150 years old. Learn more at www.armstrongflooring.com.

Forward-looking statements and cautions

The information in this press release and in our other public documents and comments contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements provide our expectations or future forecasts and may be identified by our use of words such as “anticipate “,” Estimate “,” expect “,” plan “,” intend “,” plan “,” believe “,” foresee “,” target “,” foresee “,” be able “,” want “,” want, “” might “,” should “,” seek “and other words or phrases with similar meanings in connection with any discussion of future operating or financial performance. Forward-looking statements, by their nature , deal with uncertain and risky matters as they relate to events and depend on circumstances which may or may not occur in the future. Therefore, our actual results may differ materially. ent of our expected results and 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 United States Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements beyond what is required under applicable securities laws.

We encourage you to carefully review the current report on Form 8-K that the company expects to file with the United States Securities and Exchange Commission on Monday, January 3, 2022because it will contain important information about the topics discussed in this press release. In particular, Form 8-K will contain a discussion of the risks and uncertainties the Company faces with respect to the sale process and consideration of strategic alternatives, the terms of modifications to the ABL credit facility. and the Company’s term loan facility, operational performance and related matters.

Contact details

Investors:
Amy Trojanowski
Senior Vice President, Chief Financial Officer
[email protected]

Media:
Alison van Harskamp
Director, Corporate Communications
[email protected]

SOURCE Armstrong Flooring, Inc.

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