By Paul A. Harris
Portland, Ore., Feb. 12 - Griffon Corp. priced an upsized $600 million issue of eight-year senior notes (B1/BB-/) at par to yield 5¼% in a quick-to-market Wednesday transaction, according to a market source.
The deal was upsized from $550 million.
The yield printed at the tight end of the 5¼% to 5 3/8% yield talk.
Deutsche Bank Securities Inc. was the bookrunner.
The Rule 144A and Regulation S notes come with three years of call protection.
Proceeds, along with cash on hand, will be used to fund the tender for the company's 7 1/8% senior notes due 2018, including the early consent payment.
The prospective issuer is a New York-based diversified management and holding company.
| Issuer: | Griffon Corp.
|
| Amount: | $600 million, increased from $550 million
|
| Maturity: | March 1, 2022
|
| Securities: | Senior notes
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Co-managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co., HSBC Securities, RBS Securities Inc., Wells Fargo Securities LLC, Jefferies LLC, Lazard Capital Markets LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 279 bps
|
| First call: | March 1, 2017 at 103.938
|
| Equity clawback: | 40% at 105.25 until March 1, 2017
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5¼% to 5 3/8%
|
| Marketing: | Quick to market
|
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