LONG-TERM DEBT

6 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

NOTE 8 – LONG-TERM DEBT

		At March 31, 2014													At September 30, 2013
			Outstanding Balance			Original Issuer Discount			Balance Sheet			Capitalized Fees & Expenses	Coupon Interest Rate			Outstanding Balance			Original Issuer Discount			Balance Sheet			Capitalized Fees & Expenses	Coupon Interest Rate
Senior notes due 2018	(a)	$	—		$	—		$	—		$	—	n/a		$	550,000		$	—		$	550,000		$	7,328	7.10	%
Senior notes due 2022	(a)		600,000			—			600,000			9,839	5.25	%		—			—			—			—	n/a
Revolver due 2019	(a)		20,000			—			20,000			2,227	n/a			—			—			—			2,425	n/a
Convert. debt due 2017	(b)		100,000			(11,454	)		88,546			1,256	4.00	%		100,000			(13,246	)		86,754			1,478	4.00	%
Real estate mortgages	(c)		16,818			—			16,818			657	n/a			13,212			—			13,212			185	n/a
ESOP Loans	(d)		30,087			—			30,087			79	n/a			21,098			—			21,098			24	n/a
Capital lease - real estate	(e)		9,042			—			9,042			194	5.00	%		9,529			—			9,529			207	5.00	%
Non U.S. lines of credit	(f)		9,443			—			9,443			—	n/a			4,606			—			4,606			—	n/a
Non U.S. term loans	(f)		11,559			—			11,559			88	n/a			3,115			—			3,115			27	n/a
Other long term debt	(g)		1,477			—			1,477			29	n/a			941			—			941			—	n/a
Totals			798,426			(11,454	)		786,972		$	14,369				702,501			(13,246	)		689,255		$	11,674
less: Current portion			(13,393	)		—			(13,393	)						(10,768	)		—			(10,768	)
Long-term debt		$	785,033		$	(11,454	)	$	773,579						$	691,733		$	(13,246	)	$	678,487

		Three Months Ended March 31, 2014													Three Months Ended March 31, 2013
		Effective Interest Rate			Cash Interest			Amort. Debt Discount		Amort. Deferred Cost & Other Fees		Total Interest Expense			Effective Interest Rate			Cash Interest			Amort. Debt Discount		Amort. Deferred Cost & Other Fees		Total Interest Expense
Senior notes due 2018	(a)		7.1	%	$	6,133		$	—	$	261	$	6,394			7.5	%	$	9,797		$	—	$	405	$	10,202
Senior notes due 2022	(a)		5.3	%		2,800			—		111		2,911			n/a			—			—		—		—
Revolver due 2019	(a)		n/a			306			—		142		448			n/a			206			—		157		363
Convert. debt due 2017	(b)		9.3	%		1,000			909		110		2,019			9.3	%		1,000			834		111		1,945
Real estate mortgages	(c)		3.8	%		122			—		37		159			5.4	%		135			—		22		157
ESOP Loans	(d)		3.4	%		180			—		5		185			2.9	%		158			—		2		160
Capital lease - real estate	(e)		5.3	%		114			—		7		121			5.2	%		125			—		7		132
Non U.S. lines of credit	(f)		n/a			224			—		—		224			n/a			147			—		—		147
Non U.S. term loans	(f)		n/a			101			—		—		101			n/a			133			—		25		158
Other long term debt	(g)		n/a			—			—		—		—			n/a			136			—		—		136
Capitalized interest						(173	)		—		—		(173	)					(340	)		—		—		(340	)
Totals					$	10,807		$	909	$	673	$	12,389					$	11,497		$	834	$	729	$	13,060

		Six Months Ended March 31, 2014													Six Months Ended March 31, 2013
		Effective Interest Rate			Cash Interest			Amort. Debt Discount		Amort. Deferred Cost & Other Fees		Total Interest Expense			Effective Interest Rate			Cash Interest			Amort. Debt Discount		Amort. Deferred Cost & Other Fees		Total Interest Expense
Senior notes due 2018	(a)		7.1	%	$	15,930		$	—	$	667	$	16,597			7.4	%	$	19,594		$	—	$	811	$	20,405
Senior notes due 2022	(a)		5.3	%		2,800			—		111		2,911			n/a			—			—		—		—
Revolver due 2019	(a)		n/a			473			—		278		751			n/a			424			—		313		737
Convert. debt due 2017	(b)		9.1	%		2,000			1,792		221		4,013			9.2	%		2,000			1,645		222		3,867
Real estate mortgages	(c)		4.0	%		252			—		73		325			5.4	%		274			—		43		317
ESOP Loans	(d)		3.2	%		332			—		7		339			2.9	%		325			—		4		329
Capital lease - real estate	(e)		5.3	%		233			—		14		247			5.3	%		256			—		13		269
Non U.S. lines of credit	(f)		n/a			417			—		—		417			n/a			260			—		—		260
Non U.S. term loans	(f)		n/a			153			—		4		157			n/a			306			—		51		357
Other long term debt	(g)		n/a			11			—		21		32			n/a			251			—		—		251
Capitalized interest						(266	)		—		—		(266	)					(625	)		—		—		(625	)
Totals					$	22,335		$	1,792	$	1,396	$	25,523					$	23,065		$	1,645	$	1,457	$	26,167

(a) 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 2022 (“Senior Notes”); interest is payable semi-annually on March 1 and September 1, starting September 1, 2014. Proceeds from the Senior Notes were used to redeem $550,000 of 7.125% senior notes due 2018, to pay a 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 fees and expenses. The Senior Notes are senior unsecured obligations of Griffon guaranteed by certain domestic subsidiaries, and subject to certain covenants, limitations and restrictions. At the time of issuance of the Senior Notes, Griffon agreed that, within certain time periods after the issue date, it would offer to each noteholder, pursuant to a registration statement filed with and to be declared effective by the SEC, the opportunity to exchange its Senior Notes for new notes that have substantially identical terms to those of the Senior Notes (the only material difference being that the new notes are registered with the SEC).

In connection with these transactions, Griffon capitalized $9,950 of underwriting fees and other expenses incurred related to issuance 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.

On February 14, 2014, Griffon amended its $225,000 Revolving Credit Facility (“Credit Agreement”) extending its maturity date from March 28, 2018 to March 28, 2019, amending certain financial maintenance ratio test thresholds and increasing certain baskets for permitted debt, guaranties, liens, asset sales, foreign acquisitions, investments and restricted payments. The facility includes a letter of credit sub-facility with a limit of $60,000, a multi-currency sub-facility of $50,000 and a swing line sub-facility with a limit of $30,000. Borrowings under the Credit Agreement may be repaid and re-borrowed at any time, subject to final maturity of the facility or the occurrence of a default or an 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. The current margins are 1.25% for base rate loans and 2.25% 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 Credit Agreement also includes certain restrictions, such as limitations on the ability of Griffon to incur indebtedness and liens and to make restricted payments and investments. Borrowings under the Credit Agreement are guaranteed by Griffon’s material domestic subsidiaries and are secured, on a first priority basis, by substantially all 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.

At March 31, 2014, outstanding borrowings and standby letters of credit were $20,000 and $20,352, respectively; $184,648 was available for borrowing at that date.

(b) 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 68.6238 shares of Griffon’s common stock per $1,000 principal amount of notes, corresponding to a conversion price of $14.57 per share. 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 March 31, 2014, the above conversion price included dividends paid through March 27, 2014. At both March 31, 2014 and 2013, the 2017 Notes had a capital in excess of par component, net of tax, of $15,720.

(c) On October 21, 2013, Griffon refinanced two properties’ real estate mortgages to secure new loans totaling $17,175. The loans mature in October 2018, are collateralized by the related properties and are guaranteed by Griffon. The loans bear interest at a rate of LIBOR plus 2.75%. At March 31, 2014, $16,818 was outstanding.

(d) In December 2013, Griffon’s Employee Stock Ownership Plan (“ESOP”) entered into an agreement which refinanced the two existing ESOP loans into one new Term Loan in the amount of $21,098. The Agreement also provided a Line Note with $10,000 available to purchase shares of Griffon common stock in the open market through September 29, 2014. As of March 31, 2014, 749,977 shares of Griffon common stock, for a total of $10,000, were purchased with proceeds from the Line Note. In March 2014, the Line Note was combined with the Term Loan to form one new term loan. The loan bears interest at a) LIBOR plus 2.25% or b) the lender’s prime rate, at Griffon’s option. The loan requires quarterly principal payments of $505 through September 30, 2014 and $419 per quarter thereafter, with a balloon payment of approximately $19,000 due at maturity in December 2018. The loan is secured by shares purchased with the proceeds of the loan and with a lien on a specific amount of Griffon assets, and Griffon guarantees repayment. As of March 31, 2014, approximately $30,087 was outstanding.

(e) 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 Griffon.

(f) In November 2010, Clopay Europe GMBH (“Clopay Europe”) entered into a €10,000 revolving credit facility and a €20,000 term loan. The term loan was paid off in December 2013 and the revolver had borrowings of $5,500 at March 31, 2014. The revolving facility matures in November 2014, but is renewable upon mutual agreement with the bank. The revolving credit facility accrues interest at EURIBOR plus 2.20% per annum. Clopay Europe is required to maintain a certain minimum equity to assets ratio and keep leverage below a certain level, defined as the ratio of total debt to EBITDA.

Clopay do Brazil maintains lines of credit of approximately $5,700. Interest on borrowings accrues at a rate of Brazilian CDI plus 6.0% (16.55% at March 31, 2014). At March 31, 2014 there was approximately $3,943 borrowed under the lines. Clopay Plastic Products Co., Inc. 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 (1.45% LIBOR USD and 2.47% Bankers Acceptance Rate CDN as of March 31, 2014). The revolving facility matures in November 2015. Garant is required to maintain a certain minimum equity.  At March 31, 2014, there were 0 borrowings under the revolving credit facility with CAD $15,000 available for borrowing.

In December 2013, Northcote Holdings Pty. Ltd entered into an AUD $12,500 term loan. The term loan is unsecured, requires quarterly interest payments and principal is due at maturity (December 2016). The loan accrues interest at Bank Bill Swap Bid Rate “BBSY” plus 2.8% per annum (5.5% at March 31, 2014). As of March 31, 2014, Griffon had an outstanding balance of $11,559. Subsidiaries of Northcote Holdings maintain a line of credit of approximately $2,800. The line of credit accrues interest at BBSY plus 2.25% per annum (4.95% at March 31, 2014). At March 31, 2014, there were no outstanding borrowings under the line. Griffon Corporation guarantees both the term loan and the line of credit.

(g) Other long-term debt primarily consists of capital leases.

At March 31, 2014, Griffon and its subsidiaries were in compliance with the terms and covenants of its credit and loan agreements.