S&P rates Dole Food notes CCC+

Standard & Poor's said its ratings on Dole Food Co. Inc. are unchanged following the recent revision of the company's proposed refinancing, in conjunction with its going-private transaction, which includes a $50 million increase of the now five-year senior secured term loan B to a total of $725 million from $675 million.

The issue-level rating on the upsized term loan B remains B-. The recovery rating on these facilities remains 3, indicating an expectation for meaningful (50% to 70%) recovery for senior secured lenders in the event of a payment default.

The proposed capital structure also includes a $150 million asset-based revolving credit facility (unrated) and $275 million of proposed 51/2-year junior-lien notes.

S&P assigned its CCC+ issue-level and 5 recovery ratings to these notes, indicating an expectation for modest (10% to 30%) recovery in the event of a payment default. The ratings are based on preliminary terms and are subject to review upon receipt and review of final documents.

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