Ares Management takes controlling stake through debt of Bain-backed Guitar Center

Guitar Center, a retailer of musical instruments and recording equipment, has completed a transaction that has reduced its total debt by about $500 million and annual cash interest expense by more than $70 million. As part of the deal, Ares Management has exchanged a portion of its holdings of the company's debt into preferred stock and taken a controlling interest in Guitar Center. Bain Capital, which acquired Guitar Center in 2007 in a deal valued at $2.1 billion, will retain partial ownership along with board representation.

DealsNorth AmericaUSBriefs