Dole Food Company's $600 million "B" loan was nearing its filling point as LMW went to press last week. Market players noted that commitments started flowing in faster after conference calls were held that further explained the deal's structure. A banker familiar with the credit explained that the institutional piece is being issued from Dole's Bermuda-based operations and the call helped clarify related details. "It allows the lenders to get closer to the international assets," he said, adding that the banana and fruit company has several assets outside of the U.S. An investor also noted that the call cleared up other credit details related to Bermuda's tax laws. The "B" is priced in the LIBOR plus 33/ 4% range.
Deutsche Bank, Scotia Capital, Bank of America, Société Générale and FleetBoston Financial are shopping the deal. Bankers on the credit either declined to comment or did not return calls. The $1.15 billion acquisition package will back Dole's $2.5 billion buyout agreement with Dole chairman and ceo, David Murdock, who will acquire the 76% of Dole's outstanding common stock that he and his family do not own for $33.50 per share in cash (LMW 2/24). The credit will also help refinance some of Dole's existing debt. A pro rata $300 million revolver and $250 million "A" piece is also included in the facility, priced between LIBOR plus 3-31/ 2%, according to a banker. Reportedly, there is also $450 million in bridge facilities that will accompany the transaction. A Dole spokeswoman did not return calls by press time.