S&P assigns Fender loan B+

S&P said it assigned Fender Musical Instruments Corp.’s planned $375 million term loan due 2028 B+ issue and 2 recovery ratings. The 2 rating reflects an expectation of substantial (70%-90% rounded estimate: 70%) recovery in default.

The company will use the proceeds to help acquire PreSonus Audio Electronics Inc., to repay its $220 million senior secured term loan with about $200 million outstanding and to pay fees and expenses.

The company also plans to issue a new unrated $100 million asset-based lending revolver due in 2026, which we expect to remain undrawn at transaction close.

Concurrently, S&P affirmed Fender’s B issuer rating.

The outlook is stable.

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