By Paul A. Harris
Portland, Ore., Oct. 25 - Dole Food Co. Inc. priced an upsized $300 million issue of 5.5-year senior secured notes (Caa1/CCC+/) at par to yield 7¼% on Friday, according to market sources.
The deal was upsized from $275 million.
The yield printed at the tight end of the 7¼% to 7½% yield talk.
Deutsche Bank Securities Inc., BofA Merrill Lynch and Scotia Capital (USA) Inc. were the joint bookrunners.
Proceeds will be used to help fund the purchase of the company by chairman and chief executive officer David H. Murdock. The additional proceeds resulting from the upsizing will be used to put cash on the balance sheet.
Dole Food is a Westlake Village, Calif.-based fruit and vegetables company.
| Issuer: | Dole Food Co. Inc.
|
| Amount: | $300 million, upsized from $275 million
|
| Maturity: | May 1, 2019
|
| Securities: | Senior secured notes
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Merrill Lynch, Scotia Capital (USA) Inc.
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 580 bps
|
| Call protection: | Two years
|
| Equity clawback: | 35% at 107.25 for two years
|
| Trade date: | Oct. 25
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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