Fortune Brands borrows $510 million under existing credit facilities

By Aleesia Forni

Columbus, Ohio, Oct. 12 - Fortune Brands Home & Security, Inc. borrowed $510 million under its $1 billion credit agreement, according to an 8-K filed with the Securities and Exchange Commission on Oct. 4.

The company borrowed $350 million under its five-year term loan and $160 million under its revolving credit facility, both with JPMorgan Chase Bank NA as administrative agent.

Proceeds will be used to refinance a short-term credit agreement dated August 31, 2011 and for general corporate purposes.

The Deerfield, Ill.-based company must maintain a minimum consolidated interest coverage ratio of 3.0 to 1.0 and a maximum leverage ratio of 3.5 to 1.0, or 3.75 to 1.0 during an acquisition period under the facility.

Fortune Brands Home & Security creates products and services for homeowners, including entry door systems, windows, faucets and locks.

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