Del Monte Foods buys 99.15% of 9¼% notes in tender

New York, Feb. 8 - Del Monte Foods Co. said it completed its tender offer for its $300 million principal amount of 9¼% senior subordinated notes due 2011, buying $297.643 million or 99.15%.

As announced on Feb. 3, Del Monte will pay $1,110.16 per $1,000 principal amount for the notes, including the consent payment of $40.00. Holders who tender after the consent deadline will not receive the consent payment.

At its previous announcement on Jan. 25, Del Monte said it received the necessary consents to amend the notes. By the consent deadline of 5 p.m. ET on Jan. 24, Del Monte had received consents from holders of $297 million of the notes.

The company announced the offer on Jan. 10, saying pricing for each $1,000 principal amount of the notes will be the level which gives a yield to the first call date of May 15, 2006, equal to 75 basis points over the bid-side yield to maturity of the reference security, the 2% Treasury note due May 15, 2006, calculated at 2 p.m. ET on the second business day before expiration. The total includes a $40.00 per $1,000 consent payment that will only be paid to holders who tender and deliver consents by the consent deadline of 5 p.m. ET on Jan. 24.

As an example, based on the yield of the reference security at 2 p.m. ET on Jan. 7 and assuming a Feb. 8 settlement, the price would be $1,071.51 per $1,000 principal amount, excluding the consent payment.

The offer expired at midnight ET on Feb. 7.

Del Monte will also pay accrued interest up to but excluding the payment date.

The tender is subject to conditions including the receipt of consents from holders of at least a majority of the notes by the consent deadline, excluding notes owned by Del Monte or its affiliates, the receipt of tenders of at least a majority of the notes by the expiration, excluding notes owned by Del Monte or its affiliates, and Del Monte obtaining debt financing on acceptable terms.

Morgan Stanley (800 624-1808 or call collect 212 761-1941, attention Francesco Cipollone) and Banc of America Securities (888 292-0070 or call collect 212 847-5834, attention: High Yield Special Products) are joint dealer managers and solicitation agents. Georgeson Shareholder Communications is the information agent (800 377-9583 or call collect 212 440-9800).

Del Monte is a San Francisco-based food company.

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