Del Monte to launch $1.1 billion secured credit facility on Thursday

By Sara Rosenberg

New York, Jan. 5 - Del Monte Corp. is scheduled to hold a bank meeting on Thursday to launch its proposed $1.1 billion senior secured credit facility, according to a market source.

Bank of America, BMO and Barclays are the lead banks on the deal.

The facility consists of a $500 million five-year revolver and a $600 million five-year term loan A, with both tranches talked at Libor plus 300 basis points, the source said.

There is a $500 million accordion feature.

Covenants include a maximum leverage ratio and a minimum fixed-charge coverage ratio.

Proceeds will be used to refinance existing debt.

Closing on the facility is expected in late January or early February.

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

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