Fender lifts term loan to $400 million, flexes to SOFR plus 400 bps

By Sara Rosenberg

New York, Nov. 16 – Fender Musical Instruments Corp. upsized its seven-year term loan (B) to $400 million from $375 million and lowered pricing to SOFR+CSA plus 400 basis points from talk in the range of SOFR+CSA plus 425 bps to 450 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, the source said.

The term loan still has a SOFR+CSA floor of 0.5%, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to help fund the acquisition of PreSonus Audio Electronics Inc., to repay an existing roughly $200 million term loan and, due to the upsizing, for general corporate purposes.

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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