Griffon launches $750 million term loan B at SOFR plus 350 bps

By Sara Rosenberg

New York, Jan. 10 – Griffon Corp. launched on Monday its $750 million seven-year covenant-lite term loan B (Ba2/BB) with price talk of SOFR+CSA plus 350 basis points with a 0.5% floor and an original issue discount of 99 to 99.5, according to a market source.

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., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the leads on the deal.

Commitments are due at noon ET on Jan. 20, the source added.

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.

Closing is expected during the week of Jan. 24.

Based on LTM pro forma adjusted EBITDA of $376 million, gross secured leverage is 2.3x and total leverage is 5x. Net secured leverage is 1.8x and net total leverage is 4.6x.

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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