Fortune Brands gets amended, restated $1.25 billion five-year revolver

By Angela McDaniels

Tacoma, Wash., July 5 – Fortune Brands Home & Security, Inc. entered into an amended and restated credit agreement on Thursday that provides for a $1.25 billion five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus 90 basis points to 150 bps, depending on the company’s ratings.

Up to $50 million of the revolver may be used for letters of credit.

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

The credit agreement has a covenant that requires the company to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 and a covenant that caps the company’s ratio of consolidated total debt to consolidated EBITDA at 3.5 to 1.0.

JPMorgan Chase Bank, NA is the administrative agent.

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

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