Griffon closes $800M notes offering and extends credit facility

Griffon Corporation (NYSE: GFF) has closed an $800 million offering of 6.25% senior notes due 2034 and amended its existing credit agreement, according to a company statement.

The 2034 notes are senior unsecured obligations guaranteed by certain of Griffon's domestic subsidiaries. They were sold in a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as well as to non-U.S. persons under Regulation S. The notes have not been registered under the Securities Act.

Griffon also issued a redemption notice for all outstanding 5.75% senior notes due 2028, after which none of those notes will remain outstanding.

The amended credit facility extends the maturity date from August 1, 2028 to August 18, 2031, while maintaining revolving borrowing capacity of up to $500 million. It retains a $125 million letter of credit sub-facility and a $200 million foreign currency sub-facility. The facility allows Griffon to incur incremental debt up to the greater of $500 million or an amount tied to a maximum consolidated senior secured leverage ratio of 3.50 to 1.00.

Interest under the amended facility may be calculated using either a SOFR or base rate benchmark plus an applicable margin based on Griffon's leverage ratio. Initial pricing is set at SOFR plus 1.75% or base rate plus 0.75%. The facility is secured by substantially all assets of Griffon and its subsidiary guarantors.

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