Griffon driving by with $200 million tap of 5¼% notes due 2022 backing ClosetMaid acquisition

By Paul A. Harris

Portland, Ore., Sept. 27 – Griffon Corp. plans to price a $200 million add-on to its 5¼% senior notes due March 1, 2022 in a quick-to-market Wednesday trade, according to market sources.

Deutsche Bank Securities Inc. is leading the Rule 144A and Regulation S offering.

The New York-based diversified management and holding company plans to use the proceeds to finance substantially all of its acquisition of certain entities and assets of the ClosetMaid business from Emerson Electric Co.

In a Wednesday press release Griffon stated that it intends to finance the remainder of the acquisition with cash on hand.

The new notes offer is not contingent on the completion of the ClosetMaid acquisition, the company further stated.

In the event that the acquisition is not completed, the proceeds will be used for general corporate purposes including, without limitation, a temporary pay down of Griffon’s revolving credit facility.

The original $600 million issue of 5¼% notes due 2022 priced at par in February 2014. A previous $125 million add-on priced at 98.76 to yield 5½% in May 2014.

The new add-on notes will become fungible with the existing notes.

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