Fresh Del Monte gets $800 million five-year loan at Libor plus 125 bps

By Susanna Moon

Chicago, April 21 – Fresh Del Monte Produce Inc. obtained an amended $800 million five-year syndicated senior unsecured revolving credit facility.

Interest on the loan will initially be Libor plus 125 basis points, based on leverage, with an unused fee of 17.5 bps. The spread will range from Libor plus 100 bps to 150 bps.

The company entered into the credit agreement April 16 with Merrill Lynch, Pierce, Fenner & Smith Inc. as lead arranger and book manager and Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility replaces the company's $500 million revolver set to expire Oct. 23, 2017.

The credit facility is unsecured as long as the company maintains a leverage ratio of less than 3.25 times EBITDA and is guaranteed by some of the company’s subsidiaries, the filing noted.

The covenants require a leverage ratio of no more than 3.5 times and a minimum interest coverage ratio of at least 2.25 times.

U.S. Bank NA and Wells Fargo Bank, NA are the co-syndication agents. TD Bank, NA, Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, Rabobank Nederland, New York Branch and Regions Bank are the co-documentation agents.

The facility will mature on April 15, 2020.

Fresh Del Monte is a Coral Gables, Fla.-based fruit and vegetable company.

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