Griffon Corporation prices $800M senior notes due 2034 at 6.25% coupon
Griffon Corporation has finalized an $800 million senior note offering due in 2034 with a 6.25% interest rate. The capital raised will primarily facilitate the early redemption of $975 million in existing 2028 debt, restructuring the company's liability profile.
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Griffon Corporation (NYSE: GFF) has priced an unregistered offering of $800 million in aggregate principal amount of its senior notes due 2034. The notes carry a fixed interest rate of 6.25% per annum, payable semi-annually. This refinancing move allows Griffon to replace its existing debt structure with a longer-dated instrument, aiming to manage its capital allocation strategy ahead of the maturity of its current obligations.
The new notes are senior unsecured obligations of Griffon and will be guaranteed by certain of its domestic subsidiaries. The offering was conducted through a private placement, targeting qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended. Additionally, the notes were offered outside the United States to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. The sale is expected to close on August 18, 2026, subject to customary closing conditions.
Use of Proceeds
Griffon intends to utilize the proceeds from this offering, combined with cash on hand and revolver borrowings under either its existing credit facility or a new revolving credit facility expected to close concurrently, for specific debt management purposes. The primary objective is to redeem all $975 million in aggregate principal amount of Griffon’s outstanding 5.75% Senior Notes due 2028. This redemption will occur at the applicable redemption price plus accrued and unpaid interest. Any remaining proceeds will be used to pay related fees and expenses associated with the transaction.
| Metric | Detail |
|---|---|
| Instrument | Senior Notes Due 2034 |
| Aggregate Principal | $800 million |
| Coupon Rate | 6.25% per annum |
| Payment Frequency | Semi-annual |
| Expected Closing Date | August 18, 2026 |
| Primary Use | Redemption of $975 million 2028 Notes |
Regulatory and Legal Framework
The notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction. Consequently, they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This notice does not constitute an offer to sell the notes, nor will any such offer be made, or a solicitation for an offer to purchase the notes or any other securities, in any jurisdiction where such offer or solicitation would be unlawful. Any offer of the notes will be made only by means of a private offering memorandum.
Furthermore, this notice does not constitute an offer to purchase or redeem any of the 2028 Notes. The press release was issued pursuant to and in accordance with Rule 135c under the Securities Act. Investors are advised that the communication contains forward-looking statements regarding Griffon’s intentions and expectations, which are subject to risks and uncertainties related to capital markets and the consummation of the offering.
How will the increase in coupon rate from 5.75% to 6.25% impact Griffon's annual interest expense and free cash flow generation?
What strategic rationale drives Griffon to extend its debt maturity to 2034 despite the higher borrowing cost in the current interest rate environment?
How might this refinancing affect Griffon's credit ratings and future access to capital markets for potential acquisitions or share repurchases?
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