Dole buys back $20 million 7¼% notes, aims to buy rest by year-end

By Angela McDaniels

Tacoma, Wash., Aug. 4 - Dole Food Co., Inc. has repurchased $20 million of its 7¼% notes due June 2010 since the second quarter ended on June 20, according to its 10-Q for the quarter filed with the Securities and Exchange Commission on Tuesday.

The company repurchased $17 million of the notes in the second quarter after the board of directors authorized the repurchase of up to $95 million of the notes.

Dole said it plans to offer senior secured notes during the third quarter and to use the proceeds from this offering, along with cash on hand and/or borrowings under its revolving credit facility, to redeem most of the outstanding 7¼% notes.

The company then plans to redeem or repurchase any remaining 7¼% notes during the third and/or fourth quarters with cash on hand and/or revolver borrowings.

A failure to timely redeem, repurchase or repay the notes at or before maturity could lead to an event of default, Dole noted.

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

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