Fortune Brands Home & Security gets $400 million 364-day revolver

By Sarah Lizee

Olympia, Wash., April 30 – Fortune Brands Home & Security, Inc. entered into a $400 million 364-day unsecured revolving credit agreement on Wednesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings may be used for general corporate purposes.

Interest is Libor plus 140 basis points to 180 bps, based on ratings.

The company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3 to 1.

In addition, there is a covenant under which the company's ratio of consolidated total debt minus certain cash and cash equivalents held by the company and its subsidiaries to consolidated EBITDA generally may not exceed 3.5 to 1.0.

The Deerfield, Ill., company creates products and services for homeowners, including entry door systems, windows, faucets and locks.

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