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Fitch rates Griffon facilities BB+, notes B+
Fitch Ratings said it assigned an initial long-term issuer default rating of B+ to Griffon Corp., a BB+/RR1 rating to its senior secured credit facility and a B+/RR4 rating to its senior unsecured notes.
The outlook is stable.
In addition, the agency assigned a B+/RR4 rating to Griffon's planned $200 million issuance of senior unsecured notes in an add-on to the existing 5¼% senior notes due 2022.
Proceeds will be used to finance the acquisition of ClosetMaid, which is expected to close by the end of September.
“Griffon has agreed to acquire ClosetMaid from Emerson Electric for $200 million, or $175 million net of tax benefits. The acquisition will strengthen Griffon's building products business, which Fitch believes has good growth prospects over the next several years,” the agency said in a news release.
“Borrowing to finance the transaction will cause debt/EBITDA to increase to 5.7x on a pro forma basis from 5.3x as of June 30, 2017.”
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