Fitch likes Dole's proposed IPO, notes

Fitch Ratings said it views Dole Food Co., Inc.'s proposed initial public offering of up to $500 million in common stock and proposed $325 million placement of senior secured notes due 2016 positively.

The agency maintains a CCC long-term issuer default rating for Dole, and its outlook is stable.

The company plans to use proceeds from the notes issuance, together with cash and/or borrowings under its revolver, to redeem the bulk of its $383 million 7¼% notes due June 15, 2010. It plans to use proceeds from the IPO to pay down debt.

Fitch views this potential equity offering as a credit positive, given that it could result in a meaningful reduction in the company's debt and reduce its overall financial leverage. For the last 12 months ended June 20, Dole's total debt-to-operating EBITDA ratio was 4.8 times.

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