Sweetwater launches $90 million add-on term loan at 99.04 OID

By Sara Rosenberg

New York, Feb. 12 – Sweetwater Sound was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a fungible $90 million add-on term loan due August 2028 that is talked with an original issue discount of 99.04, according to a market source.

Pricing on the term loan is SOFR+CSA plus 425 basis points with 25 bps step-ups at more than 4.6x first-lien net leverage and at more than 5.1x first-lien net leverage, and a 0.75% floor.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

JPMorgan Chase Bank and MUFG are the leads on the deal.

Commitments are due at 5 p.m. ET on Feb. 20, the source added.

Proceeds will be used for general corporate purposes.

Sweetwater is a Fort Wayne, Ind.-based online retailer of music instruments and audio gear.

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