Del Monte $855 million term loan B add-on to launch Wednesday

By Sara Rosenberg

New York, April 17 - Del Monte Corp. is scheduled to launch an $855 million term loan B add-on Wednesday, according to a market source.

Bank of America, Goldman Sachs and Lehman Brothers are the lead banks on the deal.

Proceeds will be used to fund the acquisition of certain pet product assets, including the Milk-Bone dog snack brand, from Kraft Foods Global Inc. for about $580 million, and to help fund the acquisition of cat food maker Meow Mix from The Cypress Group for about $705 million.

Following the acquisitions, Del Monte's debt to EBITDA is expected to be around 4 times in fiscal 2007.

However, assuming that most post-acquisition cash flow will be used to pay down debt, debt to EBITDA is expected to return to the 2 times to 3 times area within three years.

Both the Milk Bone and the Meow Mix transactions are expected to close in fiscal 2007, subject to the satisfaction of regulatory approvals and customary closing conditions.

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

© 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.