Griffon launches $500 million term loan at Libor plus 450-500 bps

By Sara Rosenberg

New York, Aug. 3 - Griffon Corp. launched its $500 million six-year term loan (B2) on Tuesday with price talk of Libor plus 450 basis points to 500 bps with a 1.75% Libor floor and an original issue discount of 98, according to a market source.

Goldman Sachs is the lead arranger on the term loan.

The company's $650 million credit facility also includes a $150 million four-year ABL revolver (Ba2) that is being done via lead arranger JPMorgan.

Proceeds from the facility will be used to help fund the acquisition of Ames True Temper Inc. from Castle Harlan Inc. for a total consideration of $542 million.

Other financing for the transaction will come from about $75 million of cash on hand.

Closing is expected by Sept. 30.

Following consummation of the transaction, the company expects to have cash in excess of $200 million available for general corporate purposes.

On a pro-forma basis for the 12 months ended June 30, revenue of the combined companies is $1.7 billion, compared to $1.27 billion for Griffon as a standalone.

Griffon is a New York-based manufacturing company. Ames True Temper is a Camp Hill, Pa.-based manufacturer and marketer of non-powered lawn and garden tools, wheelbarrows and other outdoor work products.

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