Griffon increases revolver to $250 million, lowers interest rate

By Angela McDaniels

Tacoma, Wash., March 16 – Griffon Corp. amended and restated its revolving credit facility on Friday to increase the facility to $250 million from $225 million and extend its maturity to March 13, 2020 from March 28, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 200 basis points, compared with Libor plus 225 bps prior to the amendment. The margin ranges from 125 bps to 225 bps based on the company’s financial performance.

The amended revolver has a letter of credit subfacility with a limit of $50 million (decreased from $60 million) and a multicurrency subfacility of $50 million. In lieu of a swingline subfacility, it provides for same-day borrowings of base rate loans.

The amended revolver has a $50 million accordion (decreased from $75 million).

The revolver’s financial maintenance tests cap the company’s leverage ratio at 5.75 times, which will step down over the life of the revolver, and the company’s senior secured leverage ratio at 3.0 times. The agreement also requires a minimum consolidated interest coverage ratio of at least 2.5 times.

J.P. Morgan Securities LLC is the lead arranger and bookrunner. JPMorgan Chase Bank, NA is the administrative agent. Deutsche Bank Securities Inc. is the syndication agent. Wells Fargo Bank, NA, Citizens Bank, NA and HSBC Bank USA, NA are the co-documentation agents.

Griffon is a New York-based management and holding company that conducts its business through three segments: home and building products, telephonics and plastics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.