Moody’s rates Dole Food loan B1

Moody's Investors Service said it affirmed Dole Food Co., Inc.'s B2 corporate family rating and B2-PD probability of default rating and assigned a B1 rating to its proposed $875 million first-lien term loan.

In addition, the agency affirmed the B1 rating on the existing $825 million term loan and B3 rating on the existing $300 million notes.

At the same time, Moody's withdrew the SGL-3 speculative grade rating.

The outlook is stable.

Moody's said the affirmation of the B2 corporate family rating reflects Dole's good market position and geographic diversity despite high financial leverage. It also reflects the agency’s view that the company has the ability to generate positive free cash flow before discretionary investments and certain other items such as legal settlements and that the company will maintain adequate liquidity.

In addition to the new term loan, Dole intends to issue $375 million of junior secured debt. The proposed financing benefits Dole's liquidity by increasing revolver availability, addressing two significant cash outlays in 2017 and extending loan maturities, the agency explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.