On December 31, the company announced amendments to ABL and term loan facilities along with the sale process of the company. Consequently, Armstrong Flooring Inc. (AFI) jumped higher in the after hours.
During the regular session, the stock saw a slight gain of 1.54% at its closing price of $1.98 with 4.03M shares exchanging. Following the announcement, AFI stock took a leap of a hug 52.02% in the after-hours at 3.91M shares. Hence, the stock was trading at $3.01 apiece in the after hours.
Founded in 1860, the flooring company, AFI has a market capitalization of $42.98 million. Currently, the company has 21.71 million shares outstanding in the market.
AFI’s Recent Announcement
As per December 31’s announcement, the company amended its ABL Credit Facility and Term Loan Facility. Moreover, the amendments were passed after receiving unanimous support from its ABL and Term Loan lenders. Furthermore, under the AFI’s ABL and Term Loan facilities, these amendments will provide some covenant modifications through June 30, 2022.
Moreover, the company also received $35 million additional aggregate principal amount of term loans. These loans were provided by its current term loan lender, Pathlight Capital LP for pursuing operational and strategic goals.
In addition, AFI announced the developments in its sale process as well. Houlihan Lokey Capital Inc. will be assisting the company with the process of the sale of AFI. Furthermore, the firm will also assist AFI in the consideration of other strategic alternatives. As per the board of directors, the sale of AFI and another strategic transaction will add to the company’s stockholders’ value.
Further, the company will provide details on the amendments in its loan facilities in a current report on Form 8-K. AFI expects to file the report on Monday, January 3, 2022, with the U.S. Securities and Exchange Commission.
GOOD DESIGN® Awards
On December 22, 2021, the company announced that its four products received the GOOD DESIGN 2020 Award. These products include ExchangeTM Luxury Flooring, TheoremTM Luxury Flooring, EmpowerTM Rigid Core, and Rest & RefugeTM Rigid Core. Moreover, all of these products have Diamond 10® Technology, which makes them resistant to scratch, stain, and scuff.
AFI’s Financial Highlights
AFI declared its third-quarter financial results on November 05, 2021. In the third quarter of 2021, the company generated net sales of $168.5 million with a net loss of $29.7 million. The net sales showed a growth of 8% year-over-year.
