Griffon Corporation Announces Favorable Repricing of Secured Term Loan B, Saving $1.8M Annual Interest

Griffon Corporation (NYSE: GFF) has announced the successful completion of a favorable repricing of its secured term loan B facility, resulting in significant annual cash interest expense savings. The repricing of the outstanding balance of $459 million of the term loan B has led to a reduction in the spread above the secured overnight financing rate (SOFR) by 25 basis points and the removal of the credit spread adjustment (CSA). Additionally, the applicable SOFR floor has been reduced from 50 to 0 basis points, resulting in estimated annual cash interest expense savings of $1.8 million based on the current outstanding balance.

Ronald J. Kramer, Chairman and CEO of Griffon Corporation, highlighted that the repricing reflects the company's strong balance sheet and operational results, ultimately reducing the cost of its debt.

Bank of America, N.A. acted as the administrative agent for the repricing, and it was noted that the pricing of each tier of the secured net leverage grid will be reduced by 25 basis points, with the removal of the CSA ranging between 10 and 25 basis points. The current rate of SOFR plus a credit spread of 250 basis points plus the CSA will be reduced to SOFR plus a 225 basis point credit spread with no CSA.

Griffon Corporation is a diversified management and holding company that oversees the operations of its subsidiaries, allocates resources among them, and manages their capital structures. The company operates through two reportable segments: Home and Building Products (HBP), which includes Clopay, and Consumer and Professional Products (CPP). Clopay, founded in 1964, is the largest manufacturer and marketer of garage doors and rolling steel doors in North America, while CPP is a leading global provider of branded consumer and professional tools, residential, industrial and commercial fans, home storage and organization products, and products that enhance indoor and outdoor lifestyles.

The market has reacted to these announcements by moving the company's shares 2.0% to a price of $63.97. For more information, read the company's full 8-K submission here.

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