Del Monte Foods to launch new credit facility Thursday

By Sara Rosenberg

New York, Jan. 18 - Del Monte Foods Co. is scheduled to hold a bank meeting at noon ET on Thursday to launch its proposed senior secured credit facility, which will contain $600 million of term debt and a new revolving credit facility, according to a market source.

Bank of America, Morgan Stanley and JPMorgan are the lead banks on the deal.

The facility will contain a $400 million term loan B and a $200 million term loan A. The size of the revolver is still to be determined, the source said. Price talk was also unavailable at press time.

Del Monte does not have a term loan A in place under its existing credit facility.

Proceeds will be used to help fund the repurchase of the company's 9¼% senior subordinated notes due 2011 and to refinance existing credit facility debt. The company is also considering a private placement of senior subordinated notes to help fund the bond repurchase.

A tender offer and consent solicitation for the 9¼% bonds was launched on Jan. 10.

Del Monte Foods is a San Francisco producer, distributor and marketer of branded and private label food and pet products.

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