Guitar Center amends loan to increase size, extend tenor, lower rate

By Sara Rosenberg

New York, April 27 - Guitar Center Inc. amended its credit facility, increasing the size to $200 million from $125 million, extending the maturity to December 2011 from 2010 and lowering the interest rate, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Borrowings under the facility can now carry an interest rate anywhere from Libor plus 75 to 125 basis points, based on utilization.

In addition, under the amendment, the company has gained a $50 million accordion feature.

Furthermore, the letter-of-credit subfacility was increased to $50 million and the company's reporting requirements were modified.

The amendment was completed on April 26.

Wells Fargo Retail Finance LLC is the administrative agent on the deal.

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

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