Griffon $125 million convertible talked at 3.5-4.0% yield, up 48-52%

By Ronda Fears

Nashville, July 14 - Griffon Corp. launched $125 million of 20-year convertible notes talked to yield 3.5% to 4.0% with a 48% to 52% initial conversion premium.

Deutsche Bank Securities Inc. is lead manager of the Rule 144A deal, which was pricing after the close Monday.

The subordinated unsecured notes will be non-callable for seven years, with puts in years seven, 10 and 15.

There also is a 120% contingent conversion trigger and 120% contingent payment trigger.

Holders will have full dividend protection.

There is a $25 million greenshoe available.

Griffon said proceeds would be used to repay about $49 million of revolving credit debt, to repurchase common stock and for general corporate purposes.

Griffon shares closed up 19c, or 1.18%, to $16.30.

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