Fender Musical launches facility amendment, price increase to lenders

By Sara Rosenberg

New York, Dec. 12 - Fender Musical Instruments Corp. held a call at 1 p.m. ET on Wednesday to launch an amendment to its credit facility that would allow for a change of control, according to market sources.

As part of the amendment, pricing on the loan would be increased to Libor plus 450 basis points from Libor plus 250 bps and a 25 bps fee would be paid to consenting lenders, sources said.

J.P. Morgan Securities LLC is leading the amendment.

Last month, the company launched via Wells Fargo Securities LLC a $245 million six-year term loan B (B2) to refinance its existing term loan, but the new deal has been pulled, sources said.

Price talk on the refinancing loan was Libor plus 475 bps to 500 bps with a 1.25% Libor floor and an original issue discount of 99 and there was 101 soft call protection for one year.

Fender is a Scottsdale, Ariz., maker of music instruments.

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