Guitar Center holds bank meeting for downsized $650 million seven-year term loan

By Paul A. Harris

St. Louis, Oct. 5 - Guitar Center, Inc. held a bank meeting on Friday for its downsized $650 million seven-year term loan B, according to a market source.

The loan, which is part of an overall $1.025 billion senior secured credit facility via JPMorgan, was downsized earlier from $800 million.

The credit facility also has a $375 million asset-based revolving credit facility.

Guitar Center is being acquired by Bain Capital Partners LLC for $63.00 in cash per share. The total transaction value, including assumed debt, is $2.1 billion.

Other LBO financing will come from $605 million in equity and $640 million of junk bonds.

Guitar Center is a Westlake Village, Calif., retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment.

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