Armstrong World to pay $13.74 dividend
Armstrong World Industries Inc., Lancaster, said it closed on a $1 billion credit facility and will use part of the proceeds along with cash on hand to pay a special dividend of $13.74 per share - for a total payout to stockholders of about $800 million.
Armstrong World Industries Inc., Lancaster, said it closed on a $1 billion credit facility and will use part of the proceeds along with cash on hand to pay a special dividend of $13.74 per share - for a total payout to stockholders of about $800 million.
Armstrong said Nov. 5 it would pursue a hefty dividend at the joint request of the Armstrong World Industries Inc. Asbestos Personal Injury Settlement Trust and Armor TPG Holdings L.L.C., which together own more than 60 percent of the company's common shares.
The trust said in a statement at the time that "current strong financing markets" would make such a dividend possible "without sacrificing any future appreciation in the value of Armstrong shares."
The maker of flooring, ceilings and cabinetry, announced the dividend after the close of markets Tuesday. Its shares were up $1.32 or 2.8 percent, to $48.18 in midday trading today on the New York Stock Exchange. The shares are up more than 12 percent from a year ago.
The company formed the asbestos trust in 2002 to compensate claimants with illnesses linked to asbestos once used in its products.
Armstrong said that as a result of the recapitalization, Standard & Poor's and Moody's lowered their credit ratings on the company. - Reid Kanaley