The US Bankruptcy Court gave an order to Armstrong Flooring, Inc. to obtain DIP financing on an interim basis on May 17, 2022. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $90 million from Bank of America, N.A., JP Morgan Chase Bank, N.A., Truist Bank, HSBC Bank USA, N.A. and Manufacturers and Traders Trust with Bank of America N.A. acting as administrative agent; and DIP term loan in the amount of $37.33 million from Pathlight Capital Fund I L.P with Pathlight Capital LP acting as administrative agent. The DIP revolving loan would carry an interest rate of Base Rate plus 7% p.a., along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the revolving loan carries a commitment fee of 0.5% p.a. The DIP facilities would mature either on June 22, 2022, provided that such date may be extended to July 7, 2022 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.50 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The final hearing is scheduled for June 3, 2022.