Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Paydowns > Headlines for Alto Energy International Ltd. > News item |
Griffon could issue more bonds, borrow under revolver for acquisition
By Devika Patel
Knoxville, Tenn., Sept. 6 – Griffon Corp. will most likely issue an add-on to existing bonds as well as use cash on hand and borrowings under its revolver to finance its $260 million acquisition of ClosetMaid Corp.
“The acquisition will be funded with a combination of cash on hand, Griffon’s existing revolving credit facility and up to $250 million of committed financing,” chief executive officer Ronald J. Kramer said on the company’s conference call announcing the deal on Wednesday.
“Our ability to do the financing is opportunistic between cash on hand and availability under our revolver.
“We can close this acquisition without doing a financing,” Kramer said.
The executive added that the company’s management will consider all opportunities for the financing, but that the money will most likely be raised through an add-on to existing bonds.
“We’ll consider the market, we’ll consider where our bonds are.
“That’s been the majority of how we’ve financed deals previously and the financing that you should look at should be likely a tack-on to our existing bonds,” Kramer said.
Kramer said that the company will most likely have cash left over after the acquisition closes and that money could be used to pay down debt.
“We currently have outstanding on our revolver, so we could pay down the revolver,” he said.
The acquisition is expected to close by the end of September.
Griffon is a New York-based provider of home and building products including garage doors, telephonics and plastic films.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.