XML 103 R66.htm IDEA: XBRL DOCUMENT v3.3.0.814
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details)
$ / shares in Units, BRL in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 13, 2015
USD ($)
Feb. 27, 2014
USD ($)
Dec. 21, 2009
USD ($)
Sep. 30, 2015
EUR (€)
Jul. 31, 2014
USD ($)
May. 31, 2014
AUD
loan
May. 30, 2014
Dec. 31, 2013
USD ($)
loan
Nov. 30, 2012
CAD
Oct. 31, 2006
USD ($)
Mar. 31, 2014
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
loan
$ / shares
shares
Sep. 30, 2013
USD ($)
Sep. 30, 2015
AUD
line_of_credit
property
Sep. 30, 2015
USD ($)
line_of_credit
property
$ / shares
Sep. 30, 2015
CAD
line_of_credit
property
Sep. 30, 2015
EUR (€)
line_of_credit
property
Sep. 30, 2015
BRL
line_of_credit
property
Mar. 12, 2015
USD ($)
Dec. 31, 2013
AUD
Dec. 31, 2013
USD ($)
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument exercised period                       5 years                    
Minimum payments under capital leases for 2015                               $ 2,399,000            
Minimum payments under capital leases for 2016                               2,067,000            
Minimum payments under capital leases for 2017                               1,891,000            
Minimum payments under capital leases for 2018                               1,501,000            
Minimum payments under capital leases for 2019                               1,495,000            
Minimum payments under capital leases thereafter                               1,617,000            
Capital leased assets, gross                         $ 16,446,000     17,314,000            
Capital leases, lessee balance sheet, assets by major class, accumulated depreciation                         6,755,000     8,520,000            
Deferred interest charges                         181,000     156,000            
Amortization                       $ 1,905,000 1,579,000 $ 1,605,000                
Proceeds from issuance of debt                       233,491,000 691,943,000 303,000                
Payments to acquire buildings                   $ 10,000,000                        
Capital lease maturity year                   2022                        
Long-term debt, percentage bearing fixed interest, percentage rate                   5.00%                        
Minimum payments under debt agreements for 2015                               7,886,000            
Minimum payments under debt agreements for 2016                               33,332,000            
Debt Agreements Future Minimum Payments Due In Three Years                               4,531,000            
Minimum payments under debt agreements for 2018                               104,442,000            
Minimum payments under debt agreements for 2019                               57,402,000            
Minimum payments under debt agreements thereafter                               $ 614,978,000            
Debt instrument, face amount                                           $ 21,098,000
Debt instrument, interest rate, stated percentage                             4.00% 4.00% 4.00% 4.00% 4.00%      
Payment of tender offer premium   $ 31,530,000                                        
Underwriting fees and other expense capitalized   10,313,000                                        
Loss from debt extinguishment                     $ (24,964,000) $ 0 38,890,000 $ 0                
Write off of deferred debt issuance cost   6,574,000                                        
Prepaid interest on defeased note on extinguishment of debt   786,000                                        
Maximum percentage of equity interest of subsidiaries borrowings guaranteed 65.00%                                          
Line of credit facility, amount outstanding                               $ 5,606 CAD 7,481          
Debt instrument, basis spread on variable rate                 1.30%                          
Outstanding debt                         799,187,000     843,569,000            
Long-term debt, gross                         $ 822,571,000     861,199,000            
Number of refinanced ESOP loan | loan               2                            
Number of new term loan refinance from ESOP loans | loan               1                            
Amount of line note available to purchase common stock in open market               $ 10,000,000                            
Share based compensation arrangement by share based payment award shares purchased for award value         $ 10,000,000                                  
Number of term loans formed | loan                         1                  
Stock issued during period, shares, ESOP | shares                         1,591,117                  
Stock issued during period, value, ESOP                         $ 20,000,000                  
ESOP, weighted average purchase price of shares purchased (in Dollars per share) | $ / shares                         $ 12.57                  
Debt instrument, interest rate during period                       6.00% 5.25%                  
Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, amount outstanding                             AUD 2,000 $ 1,402            
Debt instrument, number of loans           2                 2 2 2 2 2      
Revolver due 2019 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, amount outstanding                               $ 16,938,000            
Line of credit facility, remaining borrowing capacity                               198,062,000            
Letter Of Credit Subfacility [Member] | Revolver due 2019 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, current borrowing capacity $ 50,000                                     $ 60,000,000    
Line of credit facility, amount outstanding                               $ 35,000,000            
Multicurrency Subfacility [Member] | Revolver due 2019 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, current borrowing capacity 50,000,000                                          
Margin Rate [Member] | Revolver due 2019 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, interest rate during period                       1.00%                    
LIBOR Rate [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, interest rate during period                       2.00%                    
Convert. debt due 2017 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount     $ 100,000,000                                      
Debt instrument, interest rate, stated percentage     4.00%                                      
Debt instrument, convertible, conversion ratio                       69.3811                    
Debt conversion, converted instrument, amount                       $ 1,000                    
Debt instrument, convertible, conversion price (in Dollars per share) | $ / shares                               $ 14.41            
Debt instrument, convertible, threshold percentage of stock price trigger     1.00%                                      
Last conversion price adjustment (in Dollars per share) | $ / shares                               $ 0.08            
Potential conversion rate adjustment                             0.48% 0.48% 0.48% 0.48% 0.48%      
Debt instrument, convertible, if-converted value in excess of principal                       $ 15,720,000 $ 15,720,000                  
Convert. debt due 2017 [Member] | Level 1 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Notes payable, fair value disclosure                               $ 118,875,000            
Capital lease - real estate [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Proceeds from issuance of debt                   $ 14,290,000                        
Outstanding debt                         8,370,000 [1]     7,368,000            
Long-term debt, gross                         $ 8,551,000 [1]     $ 7,524,000 [2]            
Debt instrument, interest rate during period [1]                       5.30% 5.30% 5.30%                
Debt instrument, interest rate at period end                         5.00% [1]   5.00% [2] 5.00% [2] 5.00% [2] 5.00% [2] 5.00% [2]      
Senior notes [Member] | Level 1 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Notes payable, fair value disclosure                         $ 570,000,000                  
Senior notes [Member] | Senior note due 2022 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount   $ 600,000,000                                        
Debt instrument, interest rate, stated percentage   5.25%                                        
Senior notes [Member] | Senior note due 2022 [Member] | Senior notes due 2018 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount   $ 550,000,000                                        
Debt instrument, interest rate, stated percentage   7.125%                                        
Payment of tender offer premium   $ 31,530,000                                        
Debt instrument, periodic payment, interest   $ 16,716,000                                        
Senior notes due 2018 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, interest rate, stated percentage   7.125%                                        
Loss from debt extinguishment   $ 38,890,000                                        
Outstanding debt [3]                         590,447,000                  
Long-term debt, gross [3]                         $ 600,000,000                  
Debt instrument, interest rate during period [3]                         7.40% 7.40%                
Debt instrument, interest rate at period end [3]                         5.25%                  
Revolver due 2019 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, current borrowing capacity $ 250,000                                     $ 225,000,000    
Outstanding debt                         $ 22,991,000 [3]     $ 32,951,000            
Long-term debt, gross                         25,000,000 [3]     35,000,000 [4]            
Real estate mortgages [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount                               $ 32,280,000            
Number of secured properties | property                             4 4 4 4 4      
Number of properties refinanced | property                             2 2 2 2 2      
Number of properties with new mortgages | property                             2 2 2 2 2      
Debt instrument, maturity date                       Sep. 25, 2025                    
Debt instrument, description of variable rate basis                       LIBOR plus 2.75%                    
Debt instrument, basis spread on variable rate                       1.50%                    
Outstanding debt                         15,812,000 [5]     $ 31,810,000            
Long-term debt, gross                         $ 16,388,000 [5]     32,280,000 [6]            
Debt instrument, interest rate during period [5]                       3.80% 3.90% 4.90%                
ESOP Loans [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, description of variable rate basis                       The loan bears interest at a) LIBOR plus 2.38% or b) the lender’s prime rate, at Griffon’s option.                    
Debt instrument, basis spread on variable rate                         2.38%                  
Outstanding debt                         $ 38,684,000 [6]     36,520,000            
Long-term debt, gross                         38,946,000 [6]     36,744,000 [1]            
Debt instrument, periodic payment, principal                         551,000                  
Debt instrument balloon payment                         $ 30,137,000                  
Debt instrument, interest rate during period [6]                       2.90% 2.80% 2.90%                
Revolver due 2013 [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, description of variable rate basis                       The revolving credit facility accrues interest at EURIBOR plus 2.20% per annum.                    
Debt instrument, basis spread on variable rate                       1.75%                    
Outstanding debt                               $ 0            
Proceeds from long-term lines of credit (in Euro)       € 5,000,000               $ 5,599,000                    
Debt instrument, interest rate during period [2]                           0.50%                
Term Loan [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Long-term debt, percentage bearing fixed interest, percentage rate                             2.50% 2.50% 2.50% 2.50% 2.50%      
Outstanding debt | €                                   € 15,000,000        
Proceeds from long-term lines of credit (in Euro)       15,000,000               $ 16,795,000                    
Quarterly installments | €       € 1,250,000                                    
Term Loan [Member] | Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount | AUD                                         AUD 12,500,000  
Non U.S. term loans [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, amount outstanding                               $ 1,926,000     BRL 7,652      
Outstanding debt                         $ 28,309,000 [2]     38,843,000            
Long-term debt, gross                         28,470,000 [2]     39,142,000 [7]            
Maintains maximum amount of line of credit                               $ 3,222,000     BRL 12,800      
Non U.S. term loans [Member] | Brazilian CDI [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, interest rate at period end                             20.13% 20.13% 20.13% 20.13% 20.13%      
Non U.S. lines of credit [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, remaining borrowing capacity                               $ 4,726,000 CAD 6,307,000          
Outstanding debt                         3,306,000 [2]     8,931,000            
Long-term debt, gross [2]                         $ 3,306,000     $ 8,934,000            
Proceeds from long-term lines of credit (in Euro) | CAD                 CAD 15,000,000                          
Line of credit facility, interest rate description                       The facility accrues interest at LIBOR (USD) or the Bankers Acceptance Rate (CDN) plus 1.3% per annum.                    
Non U.S. lines of credit [Member] | LIBOR Rate [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, interest rate at period end                             1.63% 1.63% 1.63% 1.63% 1.63%      
Non U.S. lines of credit [Member] | Bankers Acceptance Rate [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, interest rate at period end                             2.03% 2.03% 2.03% 2.03% 2.03%      
Non U.S. lines of credit [Member] | Line of Credit One [Member] | Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, current borrowing capacity                             AUD 3,000,000 $ 2,103            
Debt instrument, basis spread on variable rate               2.25%                            
Debt instrument, interest rate at period end                             4.43% 4.43% 4.43% 4.43% 4.43%      
Non U.S. lines of credit [Member] | Line of Credit Two [Member] | Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, current borrowing capacity                             AUD 5,000,000 $ 3,506            
Debt instrument, basis spread on variable rate           2.50%                                
Debt instrument, interest rate at period end                             4.68% 4.68% 4.68% 4.68% 4.68%      
Term Loan May 2014 [Member] | Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Debt instrument, face amount | AUD           AUD 20,000,000                                
Debt instrument, periodic payment, principal | AUD           AUD 625,000                                
Term Loan December 2013 and May 2014 [Member] | Northcote Holdings Pty. Ltd [Member]                                            
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items]                                            
Line of credit facility, amount outstanding                             AUD 31,874,000 $ 22,347,000            
Debt instrument, basis spread on variable rate             2.80%                              
Debt instrument, interest rate at period end                             4.98% 4.98% 4.98% 4.98% 4.98%      
[1] In October 2006, CBP entered into a capital lease totaling $14,290 for real estate in Troy, Ohio. The lease matures in 2022, bears interest at a fixed rate of 5.0%, is secured by a mortgage on the real estate and is guaranteed by Griff
[2] In September 2015, Clopay Europe GMBH (“Clopay Europe”) entered into a EUR 5,000 ($5,599 as of September 30, 2015) revolving credit facility and a EUR 15,000 ($16,795 as of September 30, 2015) term loan. The term loan is payable in twelve quarterly installments of EUR 1,250, bears interest at a fixed rate of 2.5% and matures in September 2018. The revolving facility matures in November 2016, but is renewable upon mutual agreement with the bank. The revolving credit facility accrues interest at EURIBOR plus 1.75% per annum (1.75% at September 30, 2015). The revolver and the term loan are both secured by substantially all of the assets of Clopay Europe and its subsidiaries. Griffon guarantees the revolving facility and term loan. The term loan had an outstanding balance of EUR 15 million and the revolver had no borrowings outstanding at September 30, 2015. Clopay Europe is required to maintain a certain minimum equity to assets ratio and is subject to a maximum debt leverage ratio (defined as the ratio of total debt to EBITDA). Clopay do Brasil maintains lines of credit of approximately R$12,800 ($3,222 as of September 30, 2015). Interest on borrowings accrues at a rate of Brazilian CDI plus 6.0% (20.13% at September 30, 2015). As of September 30, 2015, there was approximately R$7,652 ($1,926 as of September 30, 2015) borrowed under the lines borrowed under the lines. PPC guarantees the loan and lines.In November 2012, Garant G.P. (“Garant”) entered into a CAD 15,000 revolving credit facility. The facility accrues interest at LIBOR (USD) or the Bankers Acceptance Rate (CDN) plus 1.3% per annum (1.63% LIBOR USD and 2.03% Bankers Acceptance Rate CDN as of September 30, 2015). The revolving facility matures in October 2016. Garant is required to maintain a certain minimum equity. As of September 30, 2015, there were CAD 7,481($5,606 as of September 30, 2015) borrowed under the revolving credit facility with CAD 6,307 ($4,726 as of September 30, 2015) available for borrowin
[3] On February 27, 2014, in an unregistered offering through a private placement under Rule 144A, Griffon issued, at par, $600,000 of 5.25% Senior Notes due in 2022 (“Senior Notes”); interest is payable semi-annually on March 1 and September 1. Proceeds from the Senior Notes were used to redeem $550,000 of 7.125% senior notes due 2018, to pay a call and tender offer premium of $31,530 and to make interest payments of $16,716, with the balance used to pay a portion of the related transaction fees and expenses. In connection with the issuance of the Senior Notes, all obligations under the $550,000 of 7.125% senior notes due in 2018 were discharged. The Senior Notes are senior unsecured obligations of Griffon guaranteed by certain domestic subsidiaries, and subject to certain covenants, limitations and restrictions. On June 18, 2014, Griffon exchanged all of the Senior Notes for substantially identical Senior Notes registered under the Securities Act of 1933 via an exchange offer. The fair value of Senior Notes approximated $570,000 on September 30, 2014 based upon quoted market prices (level 1 inputs).In connection with these transactions, Griffon capitalized $10,313 of underwriting fees and other expenses incurred related to the issuance and exchange of the Senior Notes, which will amortize over the term of such notes. Griffon recognized a loss on the early extinguishment of debt on the 7.125% senior notes aggregating $38,890, comprised of the $31,530 tender offer premium, the write-off of $6,574 of remaining deferred financing fees and $786 of prepaid interest on defeased notes. (b)On March 13, 2015, Griffon amended its Revolving Credit Facility (“Credit Agreement”) to increase the credit facility from$225,000 to $250,000, extend its maturity from March 28, 2019 to March 13, 2020, and modify certain other provisions of the facility. The facility includes a letter sub-facility with a limit of $50,000 (decreased from $60,000), and a multi-currency sub-facility of $50,000. The Credit Agreement provides for same day borrowings of base rate loans in lieu of a swing line sub-facility. Borrowings under the Credit Agreement may be repaid and re-borrowed at any time, subject to final maturity of the facility, or the occurrence or event of default under the Credit Agreement. Interest is payable on borrowings at either a LIBOR or base rate benchmark rate, in each case without a floor, plus an applicable margin, which adjusts based on financial performance. Current margins are 1.00% for base rate loans and 2.00% for LIBOR loans. The Credit Agreement has certain financial maintenance tests including a maximum total leverage ratio, a maximum senior secured leverage ratio and a minimum interest coverage ratio, as well as customary affirmative and negative covenants and events of default. The negative covenants place limits on Griffon's ability to, among other things, incur indebtedness, incur liens, and make restricted payments and investments. The Credit Agreement also has a minimum liquidity covenant that requires cash and available borrowings under the Credit Agreement in the aggregate to equal or exceed $100 million during the six month period prior to maturity of the 2017 Notes (which mature on January 15, 2017); such covenant will no longer apply after payment in full of the 2017 Notes. Borrowings under the Credit Agreement are guaranteed by Griffon’s material domestic subsidiaries and are secured, on a first priority basis, by substantially all domestic assets of the Company and the guarantors and a pledge of not greater than 65% of the equity interest in each of Griffon’s material, first-tier foreign subsidiaries (except that a lien on the assets of Griffon’s material domestic subsidiaries securing a limited amount of the debt under the credit agreement relating to Griffon's Employee Stock Ownership Plan ranks pari passu with the lien granted on such assets under the Credit Agreement; see footnote (d) below). At September 30, 2015, outstanding borrowings and standby letters of credit were $35,000 and $16,938, respectively, under the Credit Agreement; $198,062 was available for borrowing at that date
[4] On December 21, 2009, Griffon issued $100,000 principal of 4% convertible subordinated notes due 2017 (the “2017 Notes”). The current conversion rate of the 2017 Notes is 69.3811 shares of Griffon’s common stock per $1 principal amount of notes, corresponding to a conversion price of $14.41 per share. Prior to July 15, 2016, if for at least 20 trading days out of the last 30 trading days during any fiscal quarter the closing price of Griffon's common stock is 130% or greater than the conversion price on each such trading day, then at any time during the immediately subsequent fiscal quarter any holder has the option to convert such holder's notes (and the Company is required to notify the trustee under the notes, and the holders of the notes, that this condition to conversion has been met). At any time on or after July 15, 2016, any holder has the option to convert such holder's notes into shares of Griffon common stock. Griffon has the intent and ability to settle the principal component of any conversion of notes in cash. When a cash dividend is declared that would result in an adjustment to the conversion ratio of less than 1%, any adjustment to the conversion ratio is deferred until the first to occur of (i) actual conversion; (ii) the 42nd trading day prior to maturity of the notes; and (iii) such time as the cumulative adjustment equals or exceeds 1%. As of September 30, 2015, aggregate dividends since the last conversion price adjustment of $0.08 per share would have resulted in an adjustment to the conversion ratio of approximately 0.48%. At both September 30, 2015 and 2014, the 2017 Notes had a capital in excess of par component, net of tax, of $15,720. The fair value of the 2017 Notes approximated $118,875 on September 30, 2015 based upon quoted market prices (level 1 inputs)
[5] In September 2015, Griffon entered into a $32,280 mortgage loan secured by four properties occupied by Griffon's subsidiaries, refinancing two existing real estate mortgages and providing new mortgages on two existing real estate properties. The loans mature in September 2025, are collateralized by the specific properties financed and are guaranteed by Griffon. The loans bear interest at a rate of LIBOR plus 1.50%.
[6] In December 2013, Griffon’s Employee Stock Ownership Plan (“ESOP”) entered into an agreement that refinanced the two existing ESOP loans into one new Term Loan in the amount of $21,098 (the "Agreement"). The Agreement also provided for a Line Note with $10,000 available to purchase shares of Griffon common stock in the open market. In July 2014, Griffon's ESOP entered into an amendment of the existing Agreement which provided an additional $10,000 Line Note available to purchase shares in the open market. During 2014, the Line Notes were combined with the Term Loan to form one new Term Loan. The Term Loan bears interest at LIBOR plus 2.38% or the lender’s prime rate, at Griffon’s option. The Term Loan requires quarterly principal payments of $551, with a balloon payment of approximately $30,137 due at maturity on December 31, 2018. During 2014, 1,591,117 shares of Griffon common stock, for a total of $20,000, or $12.57 per share, were purchased with proceeds from the Line Notes. The Term Loan is secured by shares purchased with the proceeds of the loan and with a lien on a specific amount of Griffon assets (which lien ranks pari passu with the lien granted on such assets under the Credit Agreement) and is guaranteed by Griffon
[7] n December 2013 and May 2014, Northcote Holdings Pty Ltd entered into two unsecured term loans in the outstanding amounts of AUD 12,500 and AUD 20,000. The AUD 12,500 term loan requires quarterly interest payments with principal due upon maturity in December 2016. The AUD 20,000 term loan requires quarterly principal payments of AUD 625, with a balloon payment due upon maturity in May 2017. The loans accrue interest at Bank Bill Swap Bid Rate “BBSY” plus 2.8% per annum (4.98% at September 30, 2015 for each loan). As of September 30, 2015, Griffon had an outstanding combined balance of AUD 31,874 ($22,347 as of September 30, 2015) on the term loans, net of issuance costs.Subsidiaries of Northcote Holdings Pty Ltd also maintain two lines of credit of AUD 3,000 and AUD 5,000 ($2,103 and $3,506, respectively, as of September 30, 2015), which accrue interest at BBSY plus 2.25% per annum (4.43% at September 30, 2015 ) and 2.50% per annum (4.68% at September 30, 2015), respectively. As of September 30, 2015, there was AUD 2,000 ($1,402 as of September 30, 2015) in outstanding borrowings under the lines. Griffon Corporation guarantees the term loans and the AUD 3,000 line of credit; the assets of a subsidiary of Northcote Holdings Pty Ltd secures the AUD 5,000 line of credit.(h)