Griffon to get $200 million credit facility as part of refinancing

By Sara Rosenberg

New York, March 7 - Griffon Corp. plans on getting a new $200 million five-year revolving credit facility to help refinance existing debt, according to an 8-K filed with the Securities and Exchange Commission on Monday.

J.P. Morgan is the lead bank and has committed to provide $50 million of the deal, and Deutsche Bank has committed to provide $50 million as well.

Closing on the revolver is subject to, among other things, syndication of the remaining $100 million and completion of a $500 million senior notes offering.

Funds for the notes sale will be used to repay and terminate the company's senior secured term loan, to pay down any outstanding borrowings under its revolver and for general corporate purposes.

Since the notes may close prior to completion of the new revolver, Griffon amended its $125 million asset-backed revolver and its $100 million cash-flow revolver on Monday to allow for the notes sale and shorten the asset-based revolver's maturity to six months following completion of the notes.

J.P. Morgan is the administrative agent on the existing revolvers.

Griffon is a New York-based manufacturing company that operates in telephonics, building products and plastics.

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