Dole Food launches $675 million term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, Oct. 9 - Dole Food Co. Inc. launched on Wednesday its $675 million seven-year covenant-light term loan B (B2) with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, according to market sources.

The term loan B has 101 soft call protection for six months, the source said.

The company's $825 million senior secured credit facility also includes a $150 million five-year ABL revolver that is talked at Libor plus 175 bps, sources said.

Commitments are due on Oct. 23.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Scotia Capital are the lead banks on the debt.

Proceeds will be used to help fund the company's buyout by chairman and chief executive officer David H. Murdock for $13.50 in cash per share, or about $1.6 billion.

Other funds for the transaction are expected to come from $325 million of senior notes and $200 million of equity.

Closing is expected to take place during the fourth quarter.

Dole is a Westlake Village, Calif.-based fruit and vegetable company.

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