insane dividends

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Nov. 5, 2010, 7:00 a.m. EDT
Armstrong World Industries Reports Third Quarter 2010 Results and Announces Proposed Leveraged Recapitalization Including Special Cash Dividend

LANCASTER, Pa., Nov. 5, 2010 /PRNewswire via COMTEX/ -- Armstrong World Industries, Inc. /quotes/comstock/13*!awi/quotes/nls/awi (AWI 50.49, +4.84, +10.60%) today reported Special Cash Distribution

Armstrong also announced that its Board of Directors had determined to pursue a recapitalization and pay to shareholders a special cash dividend in order to efficiently allocate the Company's capital and return value to Armstrong's shareholders.

The special cash dividend of approximately $13.74 per share to Armstrong's common shareholders, or approximately $800 million in the aggregate, will be funded in part by cash on the Company's balance sheet. To fund the remaining portion of the dividend and refinance the Company's existing $430 million credit agreement, Armstrong would issue $800 million of new debt, market conditions permitting. The Company expects the new debt to be comprised of a combination of a senior secured credit facility and potentially unsecured notes.

The declaration of the special cash dividend is conditioned on the Company's ability to secure the requisite debt financing on satisfactory terms and conditions. The Board of Directors currently expects to declare and pay the special cash dividend before the end of 2010.