Published on 3/14/2011 in the Prospect News High Yield Daily.
New Issue: Griffon upsizes to $550 million, prices seven-year notes at par to yield 7 1/8%
By Paul A. Harris
Portland, Ore., March 14 - Griffon Corp. priced an upsized $550 million issue of seven-year senior notes (Ba3/BB-/) at par to yield 7 1/8% on Monday, according to an informed source.
The yield printed at the tight end of the 7¼% area price talk.
Deutsche Bank Securities Inc. ran the books for the issue, which was upsized from $500 million.
The New York-based diversified industrial products company plans to use the proceeds to repay debt and for general corporate purposes.
Issuer: | Griffon Corp.
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Amount: | $550 million, increased from $500 million
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Maturity: | April 1, 2018
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Securities: | Senior notes
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Bookrunner: | Deutsche Bank Securities Inc.
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Co-managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co., HSBC, Wells Fargo Securities
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Coupon: | 7 1/8%
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Price: | Par
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Yield: | 7 1/8%
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Spread: | 444 bps
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Call features: | Callable on April 1, 2014 at 105.344, 103.563, 101.781 par on and after April 1, 2017
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Equity clawback: | 35% at 107.125 until April 1, 2014
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Trade date: | March 14
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Settlement date: | March 17
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Ratings: | Moody's: Ba3
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| Standard & Poor's: BB-
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Distribution: | Rule 144A with registration rights
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Price talk: | 7¼% area
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Marketing: | Roadshow
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