Dole Food to launch $825 million senior credit facility on Wednesday

By Sara Rosenberg

New York, Oct. 7 - Dole Food Co. Inc. set a bank meeting for 1 p.m. ET on Wednesday to launch its $825 million senior secured credit facility, according to market sources.

Deutsche Bank Securities Inc., BofA Merrill Lynch and Scotia Capital are the lead banks on the debt.

The credit facility consists of a $150 million five-year ABL revolver and a $675 million seven-year covenant-light term loan B.

Official price talk on the deal is not yet available, sources said.

Based on filings with the Securities and Exchange Commission, pricing on the revolver is expected at Libor plus 175 basis points with a 37.5 bps unused fee, and the term loan B is expected to be priced at Libor plus 375 bps with a 1% Libor floor and have 101 soft call protection for one year.

Proceeds will be used to help fund the company's buyout by chairman and chief executive officer David H. Murdock for $13.50 in cash per share, or about $1.6 billion.

Other funds for the transaction are expected to come from $325 million of senior notes and $200 million of equity.

The notes are backed by a commitment for a $325 million senior unsecured bridge loan that is priced at Libor plus 725 bps with a 1% Libor floor. The spread will increase by 50 bps every three months until it hits a cap.

Closing is expected to take place during the fourth quarter.

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

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