Del Monte drops $1.1 billion facility pricing to Libor plus 275 bps

By Sara Rosenberg

New York, Jan. 21 - Del Monte Corp. reverse flexed pricing on its $1.1 billion senior secured credit facility (Baa3) to Libor plus 275 basis points from Libor plus 300 bps, and changed the leverage-based pricing grid so that it now only ranges from Libor plus 200 bps to 275 bps, according to a market source.

The deal is comprised of a $500 million five-year revolver and a $600 million five-year term loan A that are being sold to lenders as a strip.

Commitments towards the strip of $50 million get a 62.5 bps upfront fee, while commitments of $25 million get a 37.5 bps fee.

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

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

Proceeds will be used to refinance existing debt.

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

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