Armstrong World Industries announced that on Friday March 15, it closed on a new $1.275 billion senior secured credit facility consisting of a $250 million of revolving credit facility and a $575 million term loan A, both of which mature in March of 2018, and a $450 million term loan B which matures in March of 2020. Proceeds from this new credit agreement will be used to repay the company's previous credit agreement.

The company expects that the transaction, which was led by BofA Merrill Lynch, JP Morgan and Barclays, will lower cash interest expense by approximately $8 million annually. Fees, which are expected to be approximately $8 million, will largely be amortized over the life of the facility.

Armstrong World Industries, Inc. is a global leader in the design and manufacture of floors and ceilings. In 2012, Armstrong's consolidated net sales from continuing operations totaled approximately $2.6 billion. As of December 31, 2012, Armstrong operated 32 plants in eight countries and had approximately 8,500 employees worldwide.