By Susanna Moon
Chicago, April 16 – Guitar Center, Inc. said it issued $317,957,000 principal amount of exchange notes in the exchange offer for its 9 5/8% senior notes due 2020 that ended at 5 p.m. ET on April 11.
Guitar Center also paid an early tender amount of $1,589,785 and support party fees totaling $1,512,775 in cash in exchange for notes tendered in the offer, according to a company update on Monday.
The company previously said on April 12 that it had received tenders for $317,957,000, or 97.83%, of its $325 million of notes in the exchange offer, which was unchanged from the early deadline.
Guitar Center said it had sufficient consents to amend the note indenture and planned to settle the exchange on April 16.
The offer was announced on March 12, and on March 26 the company announced early results, which were enough to clear the threshold that required at least 95% of the notes be tendered.
As announced on March 12, the company was 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.
For each $1,000 principal amount of the existing notes, Guitar Center was offering $1,000 of new notes and warrants plus an early tender fee in cash of 0.5% of the principal amount.
The early tender fee will only be paid for notes tendered by the early deadline of 11:59 p.m. ET on March 23.
Guitar Center was also soliciting consents to amend the indenture of the 9 5/8% notes.
The offer was being conducted under Rule 144A and Regulation S.
Ahead of the exchange, Guitar Center entered into a support agreement with holders of $299 million, or 92%, of the existing notes under which those holders agreed to tender their notes and deliver consents.
As part of the transactions, Guitar Center said it planned to issue new notes and amend its $375 million senior secured asset-based revolving credit facility to extend the maturity date to the earlier of five years from the date of the amendment and 90 days prior to the maturity date of the new notes if the notes have not been refinanced by that date.
The company priced $635 million of new 9½% notes on March 14 at 98.14 to yield 10 1/8%.
KCC LLC (877 833-4150, 917 281-4800 or www.kccllc.net/GuitarCenter) is information agent.
Guitar Center is a Westlake Village, Calif., retailer of musical instruments.
New Issue
| Issuer: | Guitar Center, Inc.
|
| Issue: | Pay-in-kind notes
|
| Amount: | $317,957,000
|
| Maturity: | 2022
|
| Coupon: | 5% cash, 8% PIK
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
