Dole launches $900 million of term loans at Libor plus 350-375 bps

By Sara Rosenberg

New York, June 14 - Dole Food Co. Inc. launched its $315 million term loan B and $585 million term loan C on Tuesday with price talk of Libor plus 350 basis points to 375 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

Included in the covenant-light term loans is 101 soft call protection for one year, the source said.

The term loan B is being done at Dole, while the term loan C is being done at Solvest Ltd., a wholly owned Bermuda subsidiary of Dole.

The $1.25 billion senior secured credit facility also provides for a $350 million multi-currency asset-based revolver.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal, with Deutsche the left lead.

Proceeds will be used to repay the existing asset-based revolver and Dole and Solvest term loan borrowings as well as for general corporate purposes.

Last year, Dole obtained a $1.2 billion credit facility, consisting of a $350 million four-year asset-based revolver and an $850 million seven-year term loan.

Pricing on the existing revolver is Libor plus 400 bps with no Libor floor; the term loan is priced at Libor plus 325 bps with a 1.75% Libor floor and was sold at an original issue discount of 99.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

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