Dole Food's $1.075 billion term loan broke at 100 3/8 and traded up to 100 1/2 in the secondary market last week. Trading was active on the break Tuesday, with activity slowing down the following day. The deal traded above par despite investor complaints about the lack of covenants. Deutsche Bank leads the credit, which also includes a $350 million asset-based revolver. Pricing on the term loan was flexed down 25 basis points to LIBOR plus 1 3/4% (CIN, 4/10).
Moody's Investors Service assigned a Ba3 rating to the new credit facility. Dole will use proceeds from the new asset-based revolver and term loan to refinance previous credit facilities and those of its subsidiary, Solvest. It will also use proceeds to refinance a $150 million non-recourse term loan at Dole's parent, Dole Holdings. A Dole official did not return calls.