Del Monte to get $3 billion credit facility, $1.6 billion senior notes

By Sara Rosenberg

New York, Nov. 30 - Del Monte Foods Co.'s buyout financing is expected to include a $3 billion senior secured credit facility and $1.6 billion of senior notes, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

JPMorgan, Barclays, Morgan Stanley, Bank of America and KKR Capital Markets are leading the financing, which is expected to come to market some time next year.

The credit facility consists of a $2.5 billion term loan and a $500 million revolver.

The bonds are backed by a commitment for a $1.6 billion senior unsecured increasing rate bridge loan.

Under the agreement, Del Monte is being acquired by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners for $19.00 per share in cash. The transaction is valued at $5.3 billion, including the assumption of $1.3 billion in net debt.

Other funds for the transaction will come from $1.7 billion in equity.

There is a "go shop" period until Jan. 8.

Completion of the transaction is expected by the end of March, subject to customary closing conditions, including receipt of shareholder and regulatory approvals.

Del Monte is a San Francisco-based branded pet and consumer products company.

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