Griffon details expected pricing on $750 million term loan B

By Sara Rosenberg

New York, Dec. 21 – Griffon Corp. filed with the Securities and Exchange Commission on Tuesday the commitment letter for its $750 million seven-year covenant-lite term loan B, which outlined expected pricing on the debt.

As committed, the term loan is expected at SOFR+CSA plus 350 basis points with step-downs to SOFR+CSA plus 325 bps at less than 0.5x inside closing date consolidated senior secured net leverage and SOFR+CSA plus 300 bps at less than 1x inside closing date consolidated senior secured net leverage, and a 0% floor.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

BofA Securities Inc. is the lead arranger and bookrunner on the deal.

Proceeds will be used with borrowings under the company’s existing revolving credit facility and cash on hand to fund the $845 million acquisition of Hunter Fan Co. from MidOcean Partners.

The purchase is being done through Griffon’s subsidiary, AMES Cos. Inc., a provider of branded consumer and professional tools and products for home storage and organization, landscaping and enhancing outdoor lifestyles.

Closing is anticipated by the end of January, subject to regulatory approvals and customary conditions.

Griffon is a New York-based diversified management and holding company that conducts business through wholly owned subsidiaries. Hunter Fan is a Memphis-based designer and distributor of residential ceiling, commercial and industrial fans.

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