Del Monte adds $75 million delayed-draw component to term loan B, increasing size to $925 million

By Paul A. Harris

St. Louis, April 19 - Del Monte Corp. is adding a $75 million delayed-draw component to its term loan B add-on, increasing it to $925 million from $855 million, according to a news release issued on Wednesday by the company. The part to be funded at closing was reduced slightly to $850 million from $855 million previously.

Any draw must occur on or prior to Dec. 31, 2006.

The company was scheduled to launch its 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.

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 also anticipates that it also will make a $75 million draw on its existing revolver to provide a portion of the funding for the acquisitions, according to the news release.

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

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