By Paul A. Harris
Portland, Ore., Sept. 27 – Griffon Corp. priced an upsized $275 million add-on to its 5¼% senior notes due March 1, 2022 (B+/B+) at 101 in a quick-to-market Wednesday trade, according market sources.
The issue size was increased from $200 million.
Deutsche Bank Securities Inc. managed the sale.
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 offering was 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.
| Issuer: | Griffon Corp.
|
| Face amount: | $275 million, increased from $200 million
|
| Proceeds: | $277.75 million
|
| Maturity: | March 1, 2022
|
| Security description: | Add-on to 5¼% notes due March 1, 2022
|
| Manager: | Deutsche Bank Securities Inc.
|
| Coupon: | 5¼%
|
| Price: | 101
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 2
|
| Ratings: | S&P: B+
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
| Original issue: | $600 million priced at par in February 2014
|
| Previous add-on: | $125 million priced at 98.76 to yield 5½% in May 2014
|
| Fungibility: | New add-on notes to become fungible with existing notes
|
| Total issue size: | $1 billion
|
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