New Issue: Griffon upsizes to $550 million, prices seven-year notes at par to yield 7 1/8%

By Paul A. Harris

Portland, Ore., March 14 - Griffon Corp. priced an upsized $550 million issue of seven-year senior notes (Ba3/BB-/) at par to yield 7 1/8% on Monday, according to an informed source.

The yield printed at the tight end of the 7¼% area price talk.

Deutsche Bank Securities Inc. ran the books for the issue, which was upsized from $500 million.

The New York-based diversified industrial products company plans to use the proceeds to repay debt and for general corporate purposes.

Issuer:	Griffon Corp.
Amount:	$550 million, increased from $500 million
Maturity:	April 1, 2018
Securities:	Senior notes
Bookrunner:	Deutsche Bank Securities Inc.
Co-managers:	J.P. Morgan Securities LLC, Goldman Sachs & Co., HSBC, Wells Fargo Securities
Coupon:	7 1/8%
Price:	Par
Yield:	7 1/8%
Spread:	444 bps
Call features:	Callable on April 1, 2014 at 105.344, 103.563, 101.781 par on and after April 1, 2017
Equity clawback:	35% at 107.125 until April 1, 2014
Trade date:	March 14
Settlement date:	March 17
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights
Price talk:	7¼% area
Marketing:	Roadshow

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