Dole bonds expected soon after passage of revised bank loan amendment

By Paul A. Harris

St. Louis, Feb. 27 - Dole Food Co. Inc.'s $500 million maximum offering of new junior-lien notes is likely to come to market soon, trailing lender approval of the company's revised amendment to its senior secured credit facility, market sources say.

The amendment, which initially met with lender resistance, passed with increased pricing of Libor plus 500 basis points, 50 bps higher than the company originally offered, and a 3% Libor floor, which also was increased by 25 bps.

The amendment also adds a senior-lien leverage ratio covenant.

Deutsche Bank led the amendment.

Although no announcements have been made, Deutsche Bank Securities Inc. and Banc of America Securities LLC are expected to participate in the syndicate for the note offering, sources say.

Proceeds from the notes would be used to refinance existing senior notes.

Dole is a Westlake Village, Calif.-based producer and marketer of fresh fruit and vegetables.

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