Press Release September 04, 2013

Goodwin Procter Advises Gibson Guitar in $225 Million High Yield Notes Offering and $75 Million ABL Facility

Goodwin recently advised Gibson Guitar in connection with a private placement of $225 million in aggregate principal amount of senior secured notes, the first capital markets offering for the iconic musical instrument company in its nearly 120-year history. A substantial portion of the net proceeds from the offering was used to repay various debt obligations and streamline Gibson’s capital structure. Goodwin also advised Gibson Guitar in connection with its entry into a $75 million ABL revolving credit facility, which occurred simultaneously with the closing of the notes offering.

Founded in 1894 and based in Nashville, Tenn. with global operations, Gibson is a leading designer, manufacturer, marketer and worldwide distributer of premium musical instruments, professional audio equipment, consumer electronics and related accessories.

The transactions demanded seamless coordination among several Goodwin attorneys in various practice areas in the Boston, New York, California, Washington, D.C. and Hong Kong offices.

The notes offering team was led by partner James Barri, and included partners Janet Andolina, Richard Kline, John LeClaire, Joel Lehrer, Richard Matheny, Ettore Santucci and Scott Webster and associates Eryn Mathews, Brandon Middleton-Pratt, Milena Tantcheva and Edward Xu.

The team for the ABL facility was led by partner Laura Rupenian and included associate Milena Tantcheva with invaluable assistance from the high yield offering team.