Dole Food lifts term B to $950 million, flexes to Libor plus 300 bps

By Sara Rosenberg

New York, March 23 – Dole Food Co. Inc. upsized its seven-year term loan B to $950 million from $875 million and reduced pricing to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

Also, the MFN sunset was removed from the term loan B, the source said.

As before, the term loan has a 25 bps pricing step-down at 3.75 times first-lien net leverage, a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Included in the term loan is a first-lien net leverage covenant of 5.75 times with step-downs to 5.5 times and 5.25 times.

Morgan Stanley Senior Funding, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and the Bank of Nova Scotia are the joint lead arrangers and bookrunners on the deal.

Commitments were scheduled to be due at 2:30 p.m. ET on Thursday, accelerated from Friday, the source added.

Proceeds will be used to refinance an existing term loan B, existing secured notes and ABL borrowings.

Other funds for the transaction will come from $300 million of secured notes, downsized from $375 million.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

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