Guitar Center gets debt commitment for buyout by Bain

By Sara Rosenberg

New York, June 27 - Guitar Center, Inc. has received a debt financing commitment, which may include up to $640 million in bridge loans if a high-yield securities offering is not completed, to help fund its buyout by Bain Capital Partners LLC, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

JPMorgan is the lead bank on the debt financing.

Under the agreement, stockholders will receive $63.00 in cash per share. The total transaction value, including assumed debt, is $2.1 billion.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions, including the approval of Guitar Center's stockholders.

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

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