By Paul A. Harris
Portland, Ore., Feb. 4 – Griffon Corp. priced an upsized $850 million issue of eight-year senior notes (B2/B+/B+) at par to yield 5¾% on Tuesday, according to market sources.
The issue size increased from $800 million.
The yield printed in the middle of yield talk in the 5¾% area and inside of initial talk in the 6% area.
Deal timing was accelerated. The original timeline had Griffon's offer in the market through Wednesday.
Bookrunners were BofA Securities Inc., Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. The lead manager was Wells Fargo Securities LLC.
The New York-based diversified management company plans to use the proceeds to fund the tender and/or redemption of its 5¼% senior notes due 2022.
Griffon operates in three main segments: consumer and professional products, home and building products, and defense electronics.
| Issuer: | Griffon Corp.
|
| Amount: | $850 million, increased from $800 million
|
| Maturity: | March 1, 2028
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Deutsche Bank Securities Inc. and BNP Paribas Securities Corp.
|
| Lead manager: | Wells Fargo Securities LLC
|
| Co-managers: | Capital One Securities Inc., Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc. and BMO Securities
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 420 bps
|
| Call protection: | Three years
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
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