Canadian Music Trade - October/ November 2017 - Page 13

Moody’s Downgrades Gibson’s Credit Rating Moody’s Investors Service has downgraded Gib- son Brands, Inc.’s Corporate Family Rating (CFR) to Caa2 from Caa1 due to increasing concerns about the company’s liquidity position. The downgrade reflects Moody’s concerns about the company’s ability to meet all of its financial obligations in 2016 and 2017 that include over $80 million due to a consumer electronics supplier and $45 million in near-term outstanding indebtedness, if the asset based loan (ABL) revolv- ing credit facility is not refinanced. The expiration date of the ABL was recently accelerated to May 2017 from January 2018 because the company was in violation of a covenant. “However, we expect that the company will be able to refinance the ABL based on the strength of the underlying assets,” says Kevin Cassidy, senior credit officer at Moody’s Investors Service. “We expect Gibson’s operating performance to improve this year, but remain below our original expectations… We think the chances of some type of debt restructur- ing will increase as the company approaches the August 2018 maturity of its $375 million notes.” Headquartered in Nashville, TN, Gibson Brands designs and manufactures Gibson, Philips, Epiphone, Kramer, Baldwin, Onkyo, KRK, and Stanton instruments and products. The company’s revenues were approximately $1.6 billion for the 12 months ended June 30, 2016. TASCAM Promotes Joe Stopka to VP of Business Development TASCAM’S JOE STOPKA TASCAM, a division of TEAC of America, has promoted former Director of Business Development Joe Stopka to VP of sales and business development. In his new position, Stopka leads TASCAM’s sales, marketing, and product marketing teams for all of the Americas and is charged with building a stronger position in the pro audio and AV integration markets and further strengthening the company’s brand recognition in the MI marketplace. Stopka is based in Chicago and can be reached at 847- 867-8920 or jstopka@teac.com. TASCAM is distributed in Canada by Erikson Audio. For more information, go to www.tascam.com. Morten Lave Joins Former Colleagues at Lunastone Morten Lave has joined Danish guitar pedal company Lunastone. As former head of development for TC Electronic, he is now the third ex-TC employee to become part of Lunastone, alongside Allan Strand and Jesper Dalum. Lave served as head of development on the digital side of TC Electronic and also took the lead on establishing TC Applied Technologies in Canada as its CEO from 2003 to 2015. Lave’s role at Lunastone will be to head digital development for the company, which until now has focused on analog overdrive circuits. He has LUNASTONE’S MORTEN LAVE also purchased shares in the company. For more information, go to www.lunastonepedals.com. 13