By Paul A. Harris
Portland, Ore., May 13 – Griffon Corp. priced an upsized $125 million add-on to its 5¼% senior notes due March 1, 2022 (B2/BB-) at 98.76 to yield 5½% on Friday, according to a market source.
The deal was upsized from $100 million.
There was no widely circulated formal price talk, the source added.
Deutsche Bank Securities Inc. was the bookrunner.
The New York-based diversified management and holding company plans to use the proceeds to pay down its revolver. Subsequently Griffon may re-borrow amounts repaid under its revolver for general corporate purposes, including to fund acquisitions and for share repurchases.
| Issuer: | Griffon Corp.
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| Face amount: | $125 million, increased from $100 million
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| Proceeds: | $123.45 million
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| Maturity: | March 1, 2022
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| Security description: | Add-on to 5¼% senior notes due March 1, 2022
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| Bookrunner: | Deutsche Bank Securities Inc.
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| Coupon: | 5¼%
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| Price: | 98.76
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| Yield: | 5½%
|
| Spread: | 411 bps
|
| First call: | March 1, 2017 at 103.938
|
| Equity clawback: | 40% at 105.25 until March 1, 2017
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| Trade date: | May 13
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| Settlement date: | May 18 with accrued interest
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| Ratings: | Moody's B2
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Quick to market
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| Original issue: | $600 million priced at par in February 2014
|
| Fungibility: | Add-on notes will become fungible with the original notes
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| Total issue size: | $725 million
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