Del Monte to use term loan to redeem 11 7/8% senior notes due 2025

Chicago, May 17 – Del Monte Foods Inc. announced the upcoming redemption of its $500 million 11 7/8% senior secured notes due in 2025, according to a notice.

The company will use a new $600 million seven-year term loan B to pay for the redemption, the redemption fees and accrued interest.

The new term loan will save the company around $20 million to $30 million in pre-tax interest savings per year.

Del Monte was upgraded earlier in the year to B2 from B3 by Moody’s Investors Service and lifted to a positive outlook from S&P Global Ratings.

Del Monte is a Walnut Creek, Calif., producer, distributor and marketer of plant-based food products.

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