Griffon gets new $200 million revolver priced at Libor plus 275 bps

By Angela McDaniels

Tacoma, Wash., March 18 - Griffon Corp. entered into a new $200 million five-year cash flow revolving credit facility (Baa3/BB+) on Friday, according to an 8-K filed with the Securities and Exchange Commission.

The initial interest rate is Libor plus 275 basis points. There is no Libor floor.

JPMorgan Chase Bank NA is the administrative agent, and J.P. Morgan Securities LLC was the bookrunner and lead arranger.

There is a $50 million accordion feature.

The revolver has a $50 million letter-of-credit subfacility, a $50 million multi-currency subfacility and a $30 million swingline subfacility.

Covenants cap the company's consolidated leverage ratio at 5.5 to 1 and its senior secured leverage ratio at 2.75 to 1. The consolidated leverage ratio cap will step down over time.

The revolver refinanced and replaced the revolvers of subsidiaries Clopay Ames True Temper Holding Corp. and Telephonics Corp. The company paid a $3.7 million prepayment premium.

Griffon said the new facility removes the lines-of-business restriction in the existing revolvers, resulting in increased flexibility.

Plans for the revolver were announced on March 7. Closing was subject to, among other things, the syndication of $100 million of the revolver and the completion of a $500 million senior notes offering.

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

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