Kohlberg Gets Debt Commitment for $438 Million Steinway Purchase

Macquarie Group Ltd and General Electric Capital Corp. are providing financing to support Kohlberg & Co.’s $438 million acquisition of Steinway Musical Instruments Inc. (LVB), owner of the 160-year-old piano maker.

The private equity firm will contribute a portion of cash to back the transaction, the company said today in a regulatory filing. There’s a termination fee of as much as $13.35 million.

Steinway agreed to be taken private following 17 years as a publicly traded company. Under terms of the agreement, a Kohlberg affiliate will tender for all of the company’s outstanding shares, according to a statement yesterday.

The deal includes a 45-day period in which Waltham, Massachusetts-based Steinway can solicit other proposals.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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