Dole Food tender oversubscribed at new terms

New York, April 11 - Dole Food Co., Inc. said it received tenders of $424 million of its 8 7/8% senior notes due 2011, $209.4 million of its 8 5/8% senior notes due 2009 and $21.3 million of its 7¼% senior notes due 2010 by the extended early tender date of 5 p.m. ET on April 8.

Since the offer is still oversubscribed at the revised terms, Dole will accept $275 million of the 8 7/8% notes or 64.9% of those tendered and $50 million of the 8 5/8% notes or 23.9% of those tendered. None of the 7¼% notes will be purchased.

The tender ends at midnight ET on April 14.

At its last announcement on April 1, Dole said it had received tenders of $1.1 billion of notes and added that it had decided to increase the maximum to $325 million from the original $275 million. Dole also cut the price on offer for one series of notes.

By the early tender deadline of 5 p.m. ET on March 31, holders had tendered $424 million principal amount of its $475 million 8 7/8% senior notes due 2011, $322 million principal amount of its $400 million 8 5/8% senior notes due 2009 and $366 million principal amount of its $400 million 7¼% senior notes due 2010.

Despite the increase in size, Dole said it will still accept no more than $275 million of its 8 7/8% notes. The price on offer is $1,072.50 plus an early tender payment of $30.00 for a total of $1,102.50.

Dole said it will accept up to $50 million of its 8 5/8% notes but cut the price on offer to $1,050.00 plus an early tender payment of $30.00 for a total of $1,080.00 from $1,065.00 plus an early tender payment of $30.00 for a total of $1,095.00.

For this one series, Dole extended the early tender deadline to 5 p.m. ET on April 8, returned all tendered notes to holders and said they must retender.

All of the 7¼% notes have also been returned. Holders who wish to participate must retender, but the early tender deadline was not extended and the price remains $1,017.50 plus an early tender payment of $30.00 for a total of $1,047.50.

Holders will also receive accrued interest up to but excluding the settlement date.

Dole announced the tender on March 21, saying it would buy up to $275 million of the notes - an amount now increased. It said it would buy the 8 7/8% notes, followed by the 8 5/8% notes, with the 7¼% notes last.

If the offer is oversubscribed, Dole will first buy the highest priority notes. When all notes tendered in that category are purchased it will move to the next level and similarly to the third priority.

The Westlake Village, Calif., producer of fresh fruit, vegetables and flowers said there is no minimum condition to the tender but the transaction is subject to conditions including Dole having amended its credit facility and drawn on it.

Banc of America Securities LLC is dealer manager (High Yield Special Products at 888 292-0070 or call collect 704 388-4813). Global Bondholder Services Corp. is information agent (866 937-2200 or call collect 212 430-3774).

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