Fender launches $375 million term loan at SOFR plus 425-450 bps

By Sara Rosenberg

New York, Nov. 2 – Fender Musical Instruments Corp. was scheduled to hold a lender call at 1 p.m. ET on Tuesday to launch a $375 million seven-year term loan (B+) that is talked at SOFR+CSA plus 425 basis points to 450 bps with a SOFR+CSA floor of 0.5% and an original issue discount of 99, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months, the source said.

JPMorgan Chase Bank is the lead on the deal.

Commitments are due at 5 p.m. ET on Nov. 15, the source added.

Proceeds will be used to help fund the acquisition of PreSonus Audio Electronics Inc. and to repay an existing roughly $200 million term loan.

Closing on the acquisition is subject to U.S. regulatory approvals and other customary conditions.

Fender is a Scottsdale, Ariz.-based musical instrument manufacturer. PreSonus is a Baton Rouge, La.-based designer and manufacturer of recording and live-sound hardware and software solutions.

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