Five banks pitched Dole Food Company's $1.15 billion acquisition financing package to senior managing agents last Thursday with price talk in the LIBOR plus 3-33/4% range. A $600 million "B" piece is being offered to buysiders, joining the parade of hefty institutional pieces that have flooded the loan market this year. Officials familiar with the deal quoted the "B" spread in the 33/4% over LIBOR range. A pro rata $300 million revolver and $250 million "A" piece will also price between LIBOR plus 3-31/2%, according to a banker. One investor noted that the deal is collateralized by real estate (LMW, 1/6). Deutsche Bank, Scotia Capital, Bank of America, Société Générale and FleetBoston Financial are shopping the deal.
The debt 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. The credit will also help refinance some of Dole's existing debt. Reportedly, there is also $450 million in bridge facilities that accompany the transaction. Officials from Deutsche Bank and B of A declined to comment, while Scotia, Soc Gen and Fleet bankers did not return calls. Westlake Village, Calif.-based Dole is the world's largest producer and marketer of high-quality fresh fruit, fresh vegetables and fresh-cut flowers. Richard Dahl, Dole's v.p. and cfo, did not return calls.