Fortune Brands increases credit agreement commitments to $1.5 billion

By Toni Weeks

San Luis Obispo, Calif., Aug. 22 – Fortune Brands Home & Securities, Inc. entered into the second amendment to its credit agreement dated Aug. 22, 2011 with administrative agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the total lending commitments under the agreement to $1.5 billion from $1 billion. Specifically, the aggregate commitments for the revolving loans were increased to $975 million from $650 million, and the total commitments for the term loans were increased to $525 million from $350 million.

According to the filing, $175 million of new term loans was funded at closing, bringing total term loan borrowings to the maximum $525 million. Following the transaction, the outstanding aggregate principal amount of term loans and revolving loans under the facility is $840 million as of Wednesday.

The amendment established a new amortization schedule for outstanding term loans following Wednesday’s borrowing. The payment amounts for the $525 million of outstanding term loans are now $26.25 million on July 23, 2015, $52.5 million on each of July 25, 2016 and July 24, 2017, and the remaining balance to be paid on July 23, 2018.

The amendment also refreshes the company’s option to request up to an additional $500 million of commitments for revolving and/or term loans under the agreement.

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

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