Moody's rates Fender loan B2

Moody's Investors Service said it assigned a B2 rating to Fender Musical Instruments Corp.'s new $245 million senior secured term loan.

Moody's affirmed the B2 corporate family and probability of default ratings.

The outlook is stable.

The proceeds of the new facility will be used to refinance the company's existing $300 million term loan ($241 million outstanding) and pay transaction fees and expenses. The B2 rating on the existing term loan is affirmed, but will be withdrawn at close.

"The refinancing improves Fender's debt maturity profile and financial flexibility," Moody's senior credit officer Kevin Cassidy said in a news release. "This will enable the company to focus on its business without being distracted by potential liquidity concerns."

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