Del Monte plans to redeem $400 million 7 5/8% notes on March 13

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Del Monte Corp. plans to redeem $400 million of its $1.3 billion of currently outstanding 7 5/8% senior notes due 2019 on March 13, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price is 103.813% of par plus accrued interest to the redemption date.

The company's obligation to redeem the notes on the redemption date is conditioned on the completion of the sale of its consumer products business and a related amendment of its credit facilities, under which the company plans to repay about $881 million of the $2.61 billion term loan B currently outstanding.

The affiliate shareholder approval of the entity acquiring the consumer products business, as required by the purchase agreement, was obtained on Tuesday.

Del Monte is a San Francisco-based producer, distributor and marketer of food products and pet products.

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