XML 29 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
Debt
3 Months Ended
Mar. 31, 2016
Debt [Abstract]  
Debt

NOTE 11.  DEBT

In connection with the separation and distribution, both AWI and AFI entered into new credit facilities in April 2016.  On April 1, 2016, AFI entered into a $225.0 million asset based revolving credit facility and borrowed $100.0 million from this facility with $50.0 million of the proceeds used to fund a dividend to AWI.  



On April 1, 2016, we refinanced our $1,275.0 million senior credit facility, utilizing the $50.0 million cash dividend from AFI and cash on hand to pay down a portion of the debt outstanding.  The $1,050.0 million new credit facility is composed of a $200.0 million revolving credit facility (with a $150.0 million sublimit for letters of credit), a $600.0 million Term Loan A and a $250.0 million Term Loan B.  The terms of the credit facility resulted in a lower interest rate spread for both the revolving credit facility and Term Loan A (2.00% vs. 2.50%) and a higher spread for Term Loan B (3.25% vs. 2.50%).  In addition, we lowered the interest rate floor on the Term Loan B from 1.0% to 0.75%. We also extended the maturity of both the revolving credit facility and Term Loan A from March 2018 to April 2021 and of Term Loan B from November 2020 to April 2023.  In connection with the refinancing, we executed new interest rate swaps.  See Note 14 for additional details.



In March 2016, we amended and decreased our $100.0 million Accounts Receivable Securitization Facility with the Bank of Nova Scotia, under which AWI and its subsidiary, Armstrong Hardwood Flooring Company, sell their U.S. receivables to Armstrong Receivables Company LLC ("ARC"), a Delaware entity that is consolidated in these financial statements.  We decreased the facility to $40.0 million to reflect a lower anticipated receivables balance in connection with the separation of AFI, and we extended the maturity date to March 2019.  In connection with this amendment Armstrong Hardwood Flooring Company was removed as an originator under this facility.  As of March 31, 2016, there were no outstanding borrowings on the accounts receivable securitization facility.