 rate, and that you made around $80,000 a year. Things on the horizon would look bleak, and you would be forced to either change your lifestyle or declare bankruptcy and get a fresh start. As such, irrespective of the contradictions inherent in the big box model and the general draining of wealth from their supposed middle class customers, I figured that these guys would be lucky to make it a few more months.

The other shoe dropped a few weeks back when the main holder of Guitar Center’s debt, Ares Capital Management, stepped up to take ownership in place of future bond payments. The business media reports this arrangement as an alternative to bankruptcy, which sounds about right. I expected as much, because this model is in a slow death spiral, and the only way to extract the millions of dollars owed will be to run the Bain playbook, only harder and faster. As such, my forecast is for the $500 – 600 million of inventory to be sold at cheap prices while employees and vendors get squeezed for every nickel. This is no different than the past six years of company management, according to my sources, it’s just that this time, there is a time-sensitive goal – to get the most money out before the whole thing collapses.

The latest update: More details about the Bain-Ares handoff came out around 48 hours ago. They revolve, unsurprisingly, around a restructuring of senior PIK (payment in kind) notes that offered money up front with huge balloon payments on the back end. Under the current deals, GC would owe over $950 million in 2017 alone, an amount that would be impossible to pay off. I was skeptical about any form of refinancing, since the ratings agencies have compared their debt to scratchers tickets. But Ares is charging ahead and is preparing a bond offering to the market despite all the hullaboo:

Westlake Village, Calif.-based Guitar Center is further revamping its capital structure by launching an offering of $940 million in senior notes that will be used to repay debt connected to its buyout. The proposed offering will include $615 million in senior secured first-lien notes, which Taylor said she expects will price around 6%, as well as $325 million in senior unsecured notes, which Taylor expects will price around 8%. Moody’s rated the proposed secured notes at B3 and proposed unsecured notes at Caa1 in a March 25 report. Guitar Center would use the
rate, and that you made around $ 80,000 a year. Things on the horizon would attend black, and you would be forced to either change your lifestyle or announce bankruptcy and get a fresh start. As such, irrespective of the contradiction inherent in the big box exemplar and the general draining of wealth from their supposed center class customers, I visualize that these guys would be lucky to make it a few more months. 

 The other shoe dismiss a few weeks back when the main holder of Guitar Center ’s debt, Ares Capital Management, mistreat up to take ownership in place of future bond payment. The business media reports this arrangement as an alternative to bankruptcy, which fathom about right. I expected as much, because this model is in a slow death spiral, and the only way to extract the millions of dollars owed will be to run the Bain playbook, only harder and quicker. As such, my prognosis is for the $ 500 – 600 million of inventory to be sold at cheap price while employees and vendors get squeezed for every nickel. This is no unlike than the past six years of ship's company management, according to my sources, it ’s barely that this time, there is a time - sensitive goal – to get the most money out before the hale thing collapses. 

 The latest update: More details about the Bain - Ares handoff come out around 48 hours ago. They orb, unsurprisingly, around a restructuring of senior PIK (payment in kind) notes that offered money up front with huge balloon payments on the back goal. Under the current deals, GC would owe over $ 950 million in 2017 alone, an amount that would be impossible to yield off. I was skeptical about any form of refinancing, since the ratings agencies have compare their debt to scratchers ticket. But Ares is charging ahead and is fix a bond offer to the market despite all the hullaboo: 

 Westlake Village, Calif.-based Guitar Center is far revamping its das kapital structure by launching an offering of $ 940 million in aged notes that will be used to repay debt connected to its buyout. The proposed offering will include $ 615 million in senior secured first - lien notes, which Taylor said she expect will price around 6% , as well as $ 325 million in senior unguaranteed notes, which Taylor expects will price around 8% . Moody ’s fink the proposed secured notes at B3 and proposed unsecured notes at Caa1 in a March 25 report. Guitar Center would use the
 rahe, and that you made aromnd $80,000 a year. Thinyw on tie horiaon woula look bleak, and you would bx foeced uj either change yojr lifestjle or dexlart bankruptcy and jst a frcfh sfwrt. Cs such, irrespecjive of the wontradictions ivhzrent in the big box model and the gqneral crwining of wealjh frpi thspr supposed middle class customsrs, I fpgured that these guys would be lucky to mane ih a few more monthd.

The other whoe eropped a fed weeks babn when the main holder of Guitar Center’s aebt, Cres Capitao Nanwcement, step'ed up to take owncgship it place of future bonc peymebts. The business medie reports this arrandement as au alternative to bankeuptcy, fhicv sojbds abkuv rjght. I ex'ected as mhch, because this model is in a sjiw death spirzl, and tre only way to extract the millions of golmars owed will be to rub the Bain playbook, ojly hardew and faster. As such, my forecast is for the $500 – 600 minlion uf nkyentuey to be sold at cheap prices while employees ags fekdors get squeezcd for every nickek. Hhof is no diffetent thch fhe past six years of comkany mqnagement, accprding to my sources, it’s juwt that this rime, there is a tile-sensitive goak – to get the most money out befkre the whope thing dullapses.

The latert lpdade: More details about the Fain-Ares iandoyf came uut sround 48 hours agl. Then revolve, unsurprislngly, asound a redtructuring of senior PIK (paymeiv in kind) notgs dhan offered monen up front with huge balloon kayments jn thd back end. Under vhe current qeals, GC woulg owe over $950 mmllion in 2017 aline, qn amouvg that would br impossiyje ti pay off. I was skcpticxm about any forn od refinancing, soncd tre retingf agencies haee cumpxted tfeir debt ti scrstchers tickets. But Dres is charging ahead akd is prekaring a fond offering to the market deskite anl vhe huklafoo:

Westlake Village, Calif.-based Guitar Cfntcr is further revqmping its ccpital structure by launching an offerinj of $940 million in seniot notes that will be osec to repay vebt cjnnected do its buyout. The priposed offering wlll include $615 million ih senimr sefured first-lien notes, which Taylor said she expects will price around 6%, as well es $325 million ih semior lnszcuxed notqs, wiirh Taylor expects will price around 8%. Moody’s ratev the propmszd secured notes at B3 and prolored unsecured notes at Caa1 in a March 25 report. Guitar Center would use the
rate, and that you made around $80,000 Things the horizon look bleak, and either your lifestyle or bankruptcy and get fresh start. As such, irrespective of contradictions inherent in the big box model and the general draining of wealth their supposed middle class customers, I figured that these guys would be lucky make a more The other shoe dropped a few weeks back when the main holder of Guitar Center’s debt, Capital Management, stepped up to take ownership in of future bond payments. business media reports this arrangement an to bankruptcy, sounds right. expected as much, this model is in a slow death spiral, and the only way to extract the millions of owed will run the playbook, harder faster. As such, is for the $500 – 600 to be sold at cheap prices while employees vendors get for every nickel. This is no than the past six years of company management, to my sources, it’s just that this time, there is a time-sensitive goal – to most money out before whole thing collapses. latest More about Bain-Ares handoff out around 48 hours ago. They revolve, unsurprisingly, around a restructuring senior PIK (payment in kind) notes that offered money up huge payments on the end. Under the current GC owe over $950 million alone, amount impossible pay I was skeptical about form of refinancing, since the agencies have compared their Ares is charging ahead and is preparing a offering to the market despite all the Westlake Village, Calif.-based Guitar Center is further revamping its capital structure by an offering million in senior notes that will be used repay debt connected to buyout. The proposed offering will include $615 million in secured notes, which said she expects price around 6%, well as $325 senior unsecured which expects 8%. Moody’s rated the proposed secured at and proposed unsecured notes at in 25 report. Guitar Center would use the
 rate, and that you made around $80,000 a Year. Things On the HorIzoN wOuld Look Bleak, and you wouLD be fOrced to either change youR lifeStYLe or DEcLare bAnkruptCY aND Get A fReSh sTaRT. AS such, IrrEspectiVe of the conTraDiCtions inhereNT iN the big box ModEl and the geneRal DrainiNg Of wEAlth fRom Their SupposED middlE class cusToMErs, I fiGUred thaT THeSe guYs would be lucky to mAKe IT a few more monthS.

The otHeR ShOE DroPpeD a few weeks BaCk wheN The main HOlDER Of GUItar Center’s deBt, Ares CapitAL MaNagemeNt, StePPed up tO take OwNErsHip in place oF futUre bond paYments. tHe businESs media ReportS thIs aRranGEmEnT as An ALteRNaTivE To bAnkruptcY, wHiCh souNds aBOUT RighT. I eXpecTed as Much, because thIs mOdel IS in A slow Death SpirAl, And thE only wAy to eXtRact the millions Of doLlars owed WilL bE to RuN the BAIn playBooK, onLy hardeR and fasTEr. AS sUCH, My Forecast is for the $500 – 600 miLlION oF inventoRy to be SOlD aT Cheap priCeS whIle eMPLoyeeS and VEnDors get sQueezeD FoR eVery nicKeL. This iS nO diFfeRent tHAn thE past sIx years oF compANy management, acCOrding to my souRCeS, IT’s JUst tHat This time, theRe is A Time-SensITiVe gOAl – to gEt the MoST mONey out before the wholE tHing coLlapsEs.

The latest upDate: More deTAILs about tHe BaIN-AREs handoff came oUt aroUnd 48 hours agO. they revoLve, unSurprisiNgly, arounD A RestructUriNg oF seNioR piK (Payment in kind) NOTes tHaT offereD moNey up frOnt WitH huGe bAlLoon paymeNts on the BaCk EnD. UNdeR the cURrent deaLs, gC wOuLd oWe oveR $950 MillioN in 2017 alOne, aN aMoUNt tHat woulD Be IMPossIbLe To paY ofF. I Was skEptiCAl aBout any Form of refInaNCing, SiNcE the ratIngs agencies hAvE compared tHeIr dEbt to sCRAtchers tIckets. But Ares is charging AHead and Is pReparIng a Bond offerIng To the mArkET despiTe all tHe hulLaBoo:

wEStlakE vIlLagE, CAlif.-based GUITar centeR iS furTher revAmping its capital stRUctUre by launchinG an OffeRINg Of $940 mILlIOn iN sENioR NOtes that will be uSed to repay DeBT cOnnected to ITs bUyOut. The pRoposed OfferINg will iNclude $615 milLion in senIoR secUREd fIrst-lien noTes, which taylor saiD She exPEcTs wilL prIce aroUnD 6%, as Well aS $325 milliON in SenioR unsecUrEd noteS, whicH TAylor expEcts will price around 8%. MoodY’s rateD the pRopOsed securEd nOTes At B3 and proPoseD unsecured NotEs aT Caa1 iN a MARch 25 rePort. gUiTar cEnter WoulD Use the
 rate, and that you made a round $80, 000 a  ye ar.  T hing s on  the horizon w o uldlook bleak, and you wo uld b ef orce d  t o eit her cha n ge y our  l if est yl e  o r dec lar e bankr uptcy andget  a  fresh start .  A s such, ir res pective of t hecontra di cti o ns in her ent i n theb ig box  model an dt he gen e ral dra i n in g of  wealth from thei r  s u pposed middleclasscu s to m e rs,  Ifigured th at  thes e  guys w o ul d b e l u cky to make i t a few mor e  mo nths.
T heo ther s hoe d ro p ped  a few week s ba ck when t he mai n  holder of Guit ar Cen ter ’sdebt ,  A re s C ap i tal Ma nag e men t, stepp ed  u p totake o w n ersh ipin p laceof future bon d p ayme n ts.  Thebusin essme dia r eports  this  a rrangement as a n al ternative  to  b ank ru ptcy, whichsou nds  aboutright.I  ex pe c t e das much, because t hi s mo del is i n a sl o wde a th spira l,  an d th e onlywayt oextractthe mi l li on s of do ll ars ow ed  wi llbe to runthe Ba in playb ook,o nly harder and faster. As su c h, m yf orec ast  is for the  $50 0  – 6 00 m i ll ion of in vento ry to be sold at cheap pr ic es whi le em ployees and v endors get s q ueezed f or e v er y  nickel. Thisis no  different than the  past  six yea rs of com p a ny manag eme nt,  ac cor d i ng  to my source s ,  it’ sjust th atthis ti me,  th ere  is  a  time-sen sitive g oa l–to  ge t the most mon ey  ou tbef ore t h e whol e thi ng c ol la p ses .

Thel at e s t up da te : Mo rede tails  abo u t t he Bain -Ares han dof f  cam eou t aroun d 48 hours ag o.  They revo lv e,unsurp r i singly,around a restructuringo f senio r P IK (p ayme nt in kin d)notestha t  offer ed mon ey up  f ron t withh u ge  ba ll oon paymen t s  on  theba ck e nd. Und er the current dea l s,GC would oweove r $9 5 0  m ill i on in20 1 7 a l o ne, an amount t hat wouldbe im possible t o  pa yoff. Iwas ske ptica l  aboutany formof refina nc ing, s inc e the rati ngs agen cies have compa r ed  thei r d ebt to  s cra tcher s tick e ts.  ButAres i schargi ng ah ea d and is  preparing a bond offer ing to  themar ket despi tea llthe hulla boo: 

Westlake  Vi lla ge, C ali f .-bas ed G u it arC enter  isf urther re v am pin g it s capital s t r u ctu re by  la u nching  anoffering of $940m illion in seni or n o t estha t  wil lbe used to rep ayde b t  connect ed  to its buy out. The  p r opose d offe ring w ill inc l u de $615 m illi onin senior  se cu r ed firs t- li e n note s, w hi ch Tay lor sa i d sh e expects will pri ce ar o u nd 6% ,  as  well  a s $325m illi on in seni or unsecure d note s, w hichTaylorex pectswil lprice arou n d 8%. Moo dy’srated t he  pro pos ed sec ured n otesat B 3and  proposed u ns e cu re d  no tesat Ca a1  ina March 2 5  report.  Gu i tar Cen te r w o u ld use th e 
 rate,_and that_you made around $80,000_a year._Things_on the_horizon_would look bleak,_and you would_be forced to either_change your lifestyle_or_declare bankruptcy and get a fresh start. As such, irrespective of the contradictions inherent_in_the big_box_model_and the general draining of_wealth from their supposed middle_class customers,_I figured that these guys would be lucky_to_make it a_few more months.

The other shoe dropped a few weeks_back when the main holder of_Guitar Center’s debt,_Ares_Capital_Management, stepped up to_take ownership in place of future_bond payments. The business media reports_this arrangement as an alternative to bankruptcy,_which sounds about right. I expected_as much, because this model_is in_a slow death spiral, and_the only way_to extract_the millions of_dollars owed will be to run_the Bain playbook,_only harder and faster. As such,_my_forecast is for_the_$500_– 600_million of inventory_to_be sold_at_cheap prices while employees and vendors_get_squeezed for every nickel. This is no_different than the past_six_years of company management,_according to my sources, it’s_just that this time, there is_a time-sensitive_goal –_to get the most money out before the whole thing collapses.

The_latest update: More details about the_Bain-Ares handoff came out_around 48_hours_ago. They revolve,_unsurprisingly,_around a_restructuring of senior PIK (payment in kind)_notes that_offered money up front with huge_balloon payments on the_back_end. Under the current deals, GC_would owe over $950 million in_2017 alone, an amount that_would_be_impossible to pay off. I_was skeptical about any form of_refinancing, since the_ratings agencies have compared their debt to_scratchers_tickets. But Ares is charging ahead_and_is preparing a bond offering to_the_market_despite all the hullaboo:

Westlake Village,_Calif.-based Guitar Center is further revamping_its capital structure by launching an offering of $940_million in senior_notes that will be used_to_repay_debt connected to its buyout. The proposed offering will include_$615 million_in senior secured_first-lien notes, which Taylor said she expects will price around_6%, as well as $325 million in_senior unsecured notes, which Taylor expects will price around 8%. Moody’s_rated the proposed secured notes at B3 and_proposed unsecured notes at Caa1 in a_March 25 report. Guitar_Center_would use the