Guitar Center to amend, extend $375 million asset-based revolver

By Sarah Lizee

Olympia, Wash., March 12 – Guitar Center, Inc. plans to amend and extend is $375 million senior secured asset-based revolving credit facility, according to a press release.

The amendment and extension are part of an exchange offer and consent solicitation for its $325 million of 9 5/8% senior notes due 2020. The company is offering 5% cash, 8% PIK notes due 2022 and warrants to purchase common stock of parent Guitar Center Holdings, Inc. in exchange for the existing notes.

The company intends to use proceeds from the offering together with borrowings under the ABL facility to redeem all of its outstanding 6˝% senior secured notes due 2019 and pay fees and expenses related to the offering, exchange offer and the ABL facility’s amendment and extension.

Guitar Center is a Westlake Village, Calif., retailer of musical instruments.

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