Moody's assigns Fender loan B2

Moody's Investors Service said it assigned a B2 rating to Fender Musical Instruments Corp.'s new $375 million senior secured term loan B due 2028.

The rating is the same as Moody’s on Fender’s other senior secured loans. The also agency affirmed Fender's B1 corporate family rating and B1-PD probability of default rating.

The proceeds, along with about $59 million of balance sheet cash, will be used to fund the purchase of PreSonusAudio Electronics, Inc. and refinance the company's debt in full.

Fender will also replace its unrated $85 million asset-based revolver with a new, unrated $100 million senior secured asset-based revolver. The $85 million ABL is undrawn, and it is expected the new ABL will not be drawn when the transaction closes. No rating action was taken on Fender's outstanding term loan because Moody's said it expects to withdraw the B2 rating on this term loan due 2025 once the transaction closes.

The rating outlook is stable.

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