Fortune Brands Home amends 364-day loan for added $200 million

By Wendy Van Sickle

Columbus, Ohio, March 2 – Fortune Brands Home & Security, Inc. entered a first amendment and incremental agreement to its 364-day term loan credit agreement on March 1, according to an 8-K filing with the Securities and Exchange Commission.

Under the agreement, the company will be able to borrow a $200 million incremental term loan.

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

Borrowings will bear interest at adjusted term SOFR plus a margin ranging from 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.

The company entered into the original $400 million 364-day loan agreement on Nov. 29.

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

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