Tweet
Has this been posted?
[ QUOTE ]
Weston launches Fender recap
by Kelly Holman
Updated 07:05 PM EST, Mar-10-2005
Weston Presidio has launched a leveraged recapitalization of Fender Musical Instruments Corp. that will allow the legendary guitar and amplifier maker to pay $215 million to the Boston-based private equity firm, other shareholders and employees.
Goldman, Sachs & Co. launched a $320 million debt financing package on Wednesday, March 9, to support the transaction, said a source. The $215 million will include a dividend and employee bonuses, according to Moody's Investors Service, which rated the debt Wednesday. The new debt will also refinance $51 million of existing debt.
Fender's in-house spokesman declined to comment on the financing, while Weston Presidio did not return calls.
Moody's assigned a B1 rating to the $170 million term loan and $50 million revolving credit facility and a B3 rating on the $100 million second lien loan, as well as a stable outlook for Fender. Fender's debt will range from 3.7 to 4 times Ebitda by December 2005 as result of the recapitalization, according to Moody's.
The 59-year-old Scottsdale, Ariz.-based company is famous for its Stratocaster and Telecaster electric guitar models, but also makes electric bass and acoustic guitars, amplifiers and accessories. Founder Leo Fender invented the first electric bass guitar in 1951.
Weston Presidio acquired a minority stake alongside Los Angeles-based musical instrument company Roland Corp. U.S. in January 2002. No terms were disclosed, but PricewaterhouseCoopers-Venture Economics at the time valued the deal at $58 million.
That investment allowed existing shareholders such as Fender chief executive Bill Schultz to cash out part of their stake acquired in the buyout of the guitar maker in 1985 from CBS.
Fender generated $380 million in revenues in 2004, according to Moody's, $285 million or 75% of which came from electric and acoustic guitars.
In June 2004, the Financial Times reported Goldman had been hired to sell the company. Schultz denied the sale, calling the report "erroneous."
In October, Fender acquired the assets of Tacoma, Wash.-based Tacoma Guitar Co. for an undisclosed amount.
[/ QUOTE ]
[ QUOTE ]
Weston launches Fender recap
by Kelly Holman
Updated 07:05 PM EST, Mar-10-2005
Weston Presidio has launched a leveraged recapitalization of Fender Musical Instruments Corp. that will allow the legendary guitar and amplifier maker to pay $215 million to the Boston-based private equity firm, other shareholders and employees.
Goldman, Sachs & Co. launched a $320 million debt financing package on Wednesday, March 9, to support the transaction, said a source. The $215 million will include a dividend and employee bonuses, according to Moody's Investors Service, which rated the debt Wednesday. The new debt will also refinance $51 million of existing debt.
Fender's in-house spokesman declined to comment on the financing, while Weston Presidio did not return calls.
Moody's assigned a B1 rating to the $170 million term loan and $50 million revolving credit facility and a B3 rating on the $100 million second lien loan, as well as a stable outlook for Fender. Fender's debt will range from 3.7 to 4 times Ebitda by December 2005 as result of the recapitalization, according to Moody's.
The 59-year-old Scottsdale, Ariz.-based company is famous for its Stratocaster and Telecaster electric guitar models, but also makes electric bass and acoustic guitars, amplifiers and accessories. Founder Leo Fender invented the first electric bass guitar in 1951.
Weston Presidio acquired a minority stake alongside Los Angeles-based musical instrument company Roland Corp. U.S. in January 2002. No terms were disclosed, but PricewaterhouseCoopers-Venture Economics at the time valued the deal at $58 million.
That investment allowed existing shareholders such as Fender chief executive Bill Schultz to cash out part of their stake acquired in the buyout of the guitar maker in 1985 from CBS.
Fender generated $380 million in revenues in 2004, according to Moody's, $285 million or 75% of which came from electric and acoustic guitars.
In June 2004, the Financial Times reported Goldman had been hired to sell the company. Schultz denied the sale, calling the report "erroneous."
In October, Fender acquired the assets of Tacoma, Wash.-based Tacoma Guitar Co. for an undisclosed amount.
[/ QUOTE ]
Comment