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

By William Gullotti

Buffalo, N.Y., Dec. 2 – Fortune Brands Home & Security, Inc. entered into a $400 million 364-day term loan credit agreement on Nov. 29, according to an 8-K filing with the Securities and Exchange Commission.

Interest will range from Libor plus 62.5 basis points to 125 bps, based on credit 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.

JPMorgan Chase Bank, NA served as administrative agent for the agreement.

Bank of America, NA served as syndication agent.

JPMorgan Chase Bank, NA and BofA Securities, Inc. served as joint lead arrangers and joint bookrunners.

Borrowings may be used for general corporate purposes, including working capital, capital expenditures, permitted acquisitions and other lawful corporate purposes.

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

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