Del Monte Foods sets Thursday launch for $3.25 billion credit facility

By Sara Rosenberg

New York, Jan. 14 - Del Monte Foods Co. has scheduled a bank meeting for Thursday morning in New York to launch its proposed $3.25 billion credit facility, according to a market source.

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

The facility consists of a $750 million ABL revolver and a $2.5 billion term loan, with price talk not yet available, the source said.

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 of net debt.

According to filings with the Securities and Exchange Commission, 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.

However, those filings also had the revolver sized at $500 million, not $750 million.

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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