Total Produce plans new debt facilities with Dole Food merger

By Sara Rosenberg

New York, Feb. 17 – Total Produce plc has received a commitment for debt facilities with a term of five to seven years in connection with its merger with Dole Food Co. Inc., according to a news release.

Bank of America, Rabobank and Goldman Sachs Bank USA provided the debt commitment.

Under the agreement, Total Produce and Dole Food will combine under a newly created U.S. listed company, Dole plc. Total Produce shareholders will receive 82.5% of Dole plc shares and Castle & Cooke Inc. shareholders, which own a 55% interest in Dole’s parent company, will receive 17.5% of Dole plc shares.

In connection with the merger, Dole plc will target a primary equity capital raise of between $500 million and $700 million, which would significantly de-lever the combined balance sheet to a target of about 3x estimated combined net debt/adjusted EBITDA.

The debt commitment will be used to backstop and refinance existing Total Produce and Dole debt facilities upon completion of the transaction, with the exception of the Dole vessel financing and certain other group bilateral facilities which will remain post completion.

The combined company is estimated to have 2020 revenue of about $9.7 billion, adjusted EBITDA of around $379 million and total assets of about $4.5 billion.

Closing is subject to approval by Total Produce shareholders, regulatory approvals, market conditions and customary conditions.

Fresh produce company Dole plc will be based in Dublin, Ireland.

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