Del Monte prepays $60 million of term B debt

By Sara Rosenberg

New York, March 9 - Del Monte Foods Co. made optional prepayments totaling $60 million on its term loan B debt on Feb. 24 and March 5, bringing total outstanding term loan B debt to $822.8 million, according to a 10-Q filed with the Securities and Exchange Commission on Tuesday.

Furthermore, the company anticipates that the amount payable on its credit facility under the excess cash flow provision for fiscal 2004 will be zero, due in part to voluntary prepayments made or expected to be made, the filing added.

As a result of the unscheduled principal repayments, accelerated amortization of loan origination fees of $1.4 million was charged to interest expenses during the fourth quarter of fiscal 2004.

On Jan. 30, Del Monte amended its senior credit facility reducing the interest rate on its revolver to Libor plus 250 basis points, reducing the interest rate on its term loan B to Libor plus 250 basis points and increasing the term loan B to $882.8 million so as to repay the previous term loan A and euro term loan B.

Del Monte is a San Francisco producer, distributor and marketer of branded and private label food and pet products.

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