Di Giorgio negotiating new $120 million revolver

By Sara Rosenberg

New York, July 29 - Di Giorgio Corp. is in discussion with a financial institution about getting a new $120 million revolving credit facility, according to a 10-Q filed with the Securities and Exchange Commission Friday.

Furthermore, the credit facility would enable the company to draw down an incremental $40 million term loan under certain circumstances.

The new facility will replace the company's existing $90 million revolver due Feb. 1, 2007 and carries an interest rate of Libor plus 162.5 basis points.

As part of the new deal, Di Giorgio would need to grant the financial institution a security interest in certain assets that are not currently pledged to secure the existing revolver.

Closing on the new facility is targeted in the third quarter.

Di Giorgio is a Carteret, N.J., food wholesaler and distributor.

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