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Griffon increases revolver to $500 million, extends maturity to 2028
By Marisa Wong
Los Angeles, Aug. 2 – Griffon Corp. announced it amended its credit agreement to increase the size of its revolving credit facility to $500 million from $400 million and extend the maturity of the revolver to Aug. 1, 2028 from March 22, 2025.
Chairman and chief executive officer Ronald J. Kramer commented in a press release, “The closing of our amended revolving credit facility provides us with additional financial and operating flexibility that will support our working capital requirements and position us to continue to grow our company and further enhance shareholder value.”
The amended credit agreement continues to provide for a term loan B that matures on Jan. 24, 2029.
The revolver contains a $125 million letter-of-credit sub-facility, increased from $100 million, and a $200 million foreign currency sub-facility.
The amended credit agreement also has an accordion feature that permits Griffon to request an increase in the revolver and/or one or more additional term loan commitments, up to an aggregate principal amount equal to the greater of $500 million, increased from $375 million, and an amount such that, immediately after giving effect to the incurrence of the incremental facilities, Griffon’s secured leverage ratio does not exceed 3.5x.
Interest is equal to term SOFR, subject to a 0.5% floor with respect to the term loan B and 0% with respect to the revolver, plus an applicable margin based on the company’s leverage ratio. Initial pricing for the revolver is term SOFR plus 200 bps.
If the company’s 5¾% senior notes are not refinanced prior to Dec. 1, 2027, the revolver will mature on that date.
Bank of America, NA is the administrative agent under the amended credit agreement.
Griffon is a New York-based diversified management and holding company.
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