Griffon to offer $100 million in convertible debt

AP News
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Posted: Dec 15, 2009 7:08 PM

Griffon Corp. said Tuesday it will sell $100 million in convertible subordinated notes due in 2017 to institutional buyers.

The communications and electronic information, building products and specialty plastics business expects to grant the initial purchasers of the notes a 30-day otion to buy another $15 million in debt.

It will add the proceeds to the $321 million in cash it had at Sept. 30. Griffon will use those funds for general corporate purposes, including working capital, repaying or repurchasing corporate debt, or investments or acquisitions.

Griffon said it will negotiate the interest rate, conversion rate, and other terms with the purchasers.

Griffon shares fell 9 cents to close at $12.12 before the announcement. In late trading, they fell 77 cents, or 6.4 percent, to $11.35.