Griffon Corporation amended its credit agreement to increase the size of its revolving credit facility from $400 million to $500 million and extend the maturity of the revolver facility from March 22, 2025, to Aug. 1, 2028.The amended credit agreement continues to provide for a term loan B facility, which matures on Jan. 24, 2029.
“The closing of our amended revolving credit facility provides us with additional financial and operating flexibility that will support our working capital requirements and position us to continue to grow our company and further enhance shareholder value,” Ronald J. Kramer, chairman and CEO of Griffon, said.
Bank of America acted as administrative agent under the amended credit agreement. The revolver facility provides for revolver borrowings in an aggregate principal amount of up to $500 million and contains a $125 million letter of credit sub-facility (increased from $100 million), and a $200 million foreign currency sub-facility. The amended credit agreement also has a customary accordion feature that permits Griffon to request an increase in the revolving facility and/or one or more additional term loan commitments, up to an aggregate principal amount equal to the greater of $500 million (increased from $375 million) and an amount such that, immediately after giving effect to the incurrence of the relevant incremental facilities, Griffon’s secured leverage ratio does not exceed 3.50 to 1.00. Griffon may elect to pay interest based on either term SOFR (subject to a 0.50% floor with respect to the term loan B facility and 0.00% with respect to the Revolver Facility) or an alternate base rate, plus an applicable margin that depends on Griffon’s leverage ratio. Initial pricing for the revolver facility is term SOFR plus 2.00% or alternate base rate plus 1.00%. The revolver facility is guaranteed by Griffon’s material domestic subsidiaries and is secured by substantially all the assets of Griffon and the guarantors. The revolver facility also contains customary financial and other affirmative covenants, negative covenants and events of default. If the company’s 5.75% senior notes are not refinanced prior to December 1, 2027, the Revolver Facility will mature on that date.
