S&P: Steinway withdraws loans, new merger planned

Standard & Poor's said it withdrew the ratings on Steinway Musical Instruments Inc.'s proposed $200 million first-lien term loan due 2019 and $75 million second-lien term due 2020.

The B+ corporate credit rating remains on CreditWatch with negative implications.

Steinway withdrew its proposed financing following Kohlberg & Co.'s announcement Aug. 13 that it terminated its merger agreement with Steinway for a takeover bid of $35 per share.

Steinway subsequently announced Aug. 14 that it entered into a merger agreement with investment firm Paulson & Co. Inc. for a takeover price of $40 per share, S&P said.

The agency said it intends to resolve the CreditWatch listing when financing details related to the Paulson transaction become available.

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