CORRECTING and REPLACING Griffon Corporation Announces Amendment and Extension of Revolving Credit Facility

NEW YORK–(BUSINESS WIRE)– Contact information should read: Douglas J. Wetmore, Chief Financial Officer
Anthony Gerstein, Senior Vice President (sted Anthony Gerstein, Senior Vice President Chief Financial Officer).

The corrected release reads:

GRIFFON CORPORATION ANNOUNCES AMENDMENT AND EXTENSION OF REVOLVING CREDIT FACILITY

Griffon Corporation (NYS: GFF) announced today that it has amended and extended its cash flow revolving credit facility pursuant to a previously disclosed commitment letter with JPMorgan Chase Bank N.A and J.P. Morgan Securities LLC.

The amended credit facility provides for revolving borrowings in an aggregate principal amount of up to $225 million (increased from $200 million) that will support Griffon’s working capital requirements and its anticipated growth strategies. The facility also has a $75 million accordion feature, exercisable if new or existing lenders agree to provide or increase their commitments. Maturity of the facility has been extended from March 2016 to March 2018. Griffon currently has no borrowings outstanding under the amended credit facility; there are approximately $23 million of standby letters of credit currently outstanding.

Griffon may elect to pay interest based on either a LIBOR or base benchmark rate, with no floor, plus an applicable margin that depends on Griffon’s leverage ratio. Current pricing is LIBOR plus 2.25% (compared to 2.75% prior to the amendment) or base rate plus 1.25% (compared to 1.75% prior to the amendment). The facility is guaranteed by Griffon’s material domestic subsidiaries, and is collateralized by substantially all the assets of Griffon and its material domestic subsidiaries. Under the amended credit facility certain negative covenants, such as those relating to restricted payments and acquisitions, were modified to provide Griffon with additional operating flexibility.

Forward-looking Statements

“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income, earnings, cash flows, revenue, changes in operations, operating improvements, industries in which Griffon Corporation (the “Company” or “Griffon”) operates and the United States and global economies that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates,” “supports,” “plans,” “projects,” “expects,” “believes,” “should,” “would,” “could,” …read more
Source: FULL ARTICLE at DailyFinance