Del Monte Foods' $3 billion credit facility expected January business

By Sara Rosenberg

New York, Dec. 9 - Del Monte Foods Co.'s proposed $3 billion senior secured credit facility is anticipated to launch with a bank meeting sometime in January, according to a market source.

JPMorgan, Barclays, Morgan Stanley, Bank of America and KKR Capital Markets are leading the financing.

As outlined in filings with the Securities and Exchange Commission, the credit facility consists of a $2.5 billion term loan and a $500 million revolver.

Proceeds will be used to help fund the buyout of the company 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 $1.6 billion of senior notes, which are backed by a commitment for a $1.6 billion senior unsecured increasing rate bridge loan, and $1.7 billion in equity.

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

Completion of the acquisition 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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