Bloomberg News

Dole Said to Set Rate on $900 Million of Refinancing Term Loans

June 15, 2011

June 15 (Bloomberg) -- Dole Food Co. set guidance on $900 million of term loans it’s seeking to refinance debt, according to two people with knowledge of the matter.

The world’s biggest fresh fruit and vegetable producer is proposing to sell a $315 million term loan B and a $585 million term loan C at 3.5 percentage points to 3.75 percentage points more than the London interbank offered rate, said the people who declined to be identified because the terms are private. The lending benchmark will have a 1.25 percent floor.

Dole is proposing to sell the loans, which do not contain financial maintenance covenants, at 99.5 cents on the dollar, according to the people.

Lenders will get one year of 101 soft-call protection, the people said, meaning Westlake Village, California-based Dole would have to pay one cent more than face value to reprice the debt in its first year.

Marty Ordman, a spokesman for Dole, said the company would have no further comment beyond a June 13 statement.

The Deutsche Bank AG-led transaction includes a $350 million multicurrency asset-based revolving credit facility.

--Editors: Faris Khan, Richard Bedard

DOLE US <EQUITY> CN

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


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