S&P lifts Griffon notes

S&P said it upgraded Griffon Corp.’s unsecured notes to B from B- and revised their recovery rating to 5 from 6. The agency also affirmed the issuer’s B+ rating.

The higher rating reflects the lower amount of secured debt in the capital structure leaving more for unsecured creditors in a bankruptcy.

Griffon used the proceeds from the sale of its Telephonics business to repay $300 million of its $800 million term loan B due 2029 and declared special dividend payable on July 20, estimated at about $100 million.

The outlook is stable.

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