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Ames True Temper gets $500 million loans under amended and restated credit agreement
By Paul A. Harris
St. Louis, Sept. 8 - Goldman Sachs Lending Partners and Deutsche Bank agreed on Monday to provide Clopay Ames True Temper Holding Corp. with a $375 million senior secured term loan facility, according to an 8-K filed Tuesday with the Securities & Exchange Commission.
Also, JPMorgan and Deutsche Bank have agreed to provide Clopay Ames with a $125 million senior secured ABL facility.
The loans were made on the terms and subject to the conditions set forth in the amended and restated debt commitment letter.
Clopay Acquisition Corp., an indirect wholly owned subsidiary of Griffon Corp., entered into debt and equity financing commitments, the proceeds of which are sufficient to pay the purchase price for the acquisition of all of the outstanding shares of Chatt Holdings Inc., for a total of $542 million in cash (on a cash and debt-free basis).
On July 19, Clopay entered into a stock purchase agreement with Chatt, Ames Holdings, of which Ames True Temper, Inc. is a wholly owned subsidiary, and Griffon, relating to the stock purchase.
Clopay and Clopay Acquisition have represented that Griffon and its subsidiaries will contribute no less than $196 million in cash to Clopay Acquisition, which represents an additional $100 million from the amount in the original commitment letter.
It is anticipated that approximately $25 million of the ABL facility will be drawn at closing.
The funds drawn under the ABL Facility, together with the proceeds of the term facility and the cash contributed from Griffon and its subsidiaries, will be used to fund the stock purchase and to repay the outstanding balance on an existing ABL facility.
Ames True Temper is a Camp Hill, Pa.-based manufacturer of outdoor work products.
New York-based Griffon is a management and holding company that conducts business through its subsidiaries.
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