Buysiders have scarfed up Del Monte's $500 million "B" piece and $300 million senior secured floating-rate note, oversubscribing the tranches within days of launch. The $1.4 billion debt package hit the market on Nov. 21, and the institutional tranches filled by last Monday, said a banker. It is still too early to determine if a downward flex on the prices would materialize, he added. The "B" loan is priced at LIBOR plus 4%, while the syndicated note is priced 1/4% higher. The note has the same collateral package as the bank debt but is noncallable for five years, according to a buysider (LMW, 11/25).Thomas Gibbons, senior v.p. and treasurer of Del Monte, did not return calls.
The credit backs Del Monte's acquisition of Starkist, College Inn Broth, and other businesses from H.J. Heinz. The Bank of America, J.P. Morgan, UBS Warburg, BMO Nesbitt Burns, and Morgan Stanley-led facility also includes a $350 million revolver and a $250 million "A" term loan. A $300 million bridge-to-bond offering held by B of A and J.P. Morgan also backs the acquisition. The bond is expected to hit the market this month. Bankers on the deal declined to comment or could not be reached by press time.