Del Monte to launch $1.6 billion credit facility after Labor Day

By Sara Rosenberg

New York, Aug. 15 - Del Monte Foods Co. is scheduled to launch a $1.6 billion credit facility after Labor Day, according to market sources. Bank of America, JPMorgan Chase, UBS Warburg and Morgan Stanley are the lead banks on the deal.

The loan consists of a $450 million six-year revolver with an interest rate of Libor plus 250 basis points, a $250 million six-year term loan A with an interest rate of Libor plus 250 basis points and a $900 eight-year term loan B with an interest rate of Libor plus 275 basis points, market sources said.

Proceeds will be used to help fund the merger with certain H.J. Heinz Co. businesses, including StarKist, 9- Lives, Kibbles ' n Bits, Pup-Peroni, Snausages, Naw somes!, Nature's Goodness Baby Food and College Inn broths.

The proposed merger is expected to close at the end of calendar year 2002 or early 2003, and is subject, among other things, to approval by the Company's stockholders, receipt of a private letter ruling from the Internal Revenue Service, receipt of applicable governmental approvals and the satisfaction of other customary closing conditions, a company press release said.

Del Monte is a San Francisco, Calif. processed food company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.