Guitar Center LBO financing to include $1.175 billion credit facility, $640 million bonds

By Sara Rosenberg

New York, July 26 - Guitar Center, Inc. detailed its leveraged buyout financing package, including plans for a $1.175 billion senior secured credit facility and $640 million of high-yield notes, according to a PREM14A filed with the Securities and Exchange Commission Thursday.

JPMorgan is the lead bank on the debt.

The credit facility consists of a $375 million asset-based revolver and an $800 million term loan.

As a backup for the bonds, the company has received a commitment for a $300 million senior unsecured bridge loan and a $340 million senior subordinated unsecured bridge loan.

Other LBO financing will come from $605 million in equity.

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.

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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