July 07, 2020 I Finance

Guitar Center Announces Settlement Exchange Offer

Guitar Center Announces Settlement Exchange Offer

Guitar Center yesterday announced the final settlement of its previously announced exchange offer to eligible holders of its outstanding 13.000% cash/payment-in-kind notes due 2022. The exchange offer, which was made pursuant to the terms and subject to the conditions set forth in the company’s Amended and Restated Confidential Offering Memorandum, dated June 17, 2020, consisted of an offer to exchange any and all of its existing notes for additional 13.000% cash/payment-in-kind notes due 2022 governed by the indenture, dated May 15, 2020. As further described in the Offering Memorandum, eligible holders of existing notes received in exchange for a combination of each $1,000 principal amount of validly tendered existing notes and $24.288758 as a cash payment per $1,000 principal amount of the existing notes validly tendered rounded down to the nearest penny (the cash payment), $1,035.63 principal amount of exchange notes.

At settlement, the company issued $58,433,394 in aggregate principal amount of exchange notes in exchange for the cash payment and existing notes validly tendered and accepted for exchange pursuant to the exchange offer.

The exchange notes have not been registered under the Securities Act of 1933, as amended or the securities laws of any state and may not be offered or sold in the U.S. absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws.


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