Del Monte Food's new deal hit the street running last Monday with $1-5 million pieces of the company's new "B" term loan trading in the 100 5/8 to 100 7/8 range. One dealer said he had completed 30-plus trades in the name by last Wednesday. Another dealer expressed skepticism to the high levels where the bank debt was trading, citing the loan's lack of call protection. Still, relative to where the bonds are trading it is a good deal, he added. Del Monte's new 85Ž 8% senior notes are currently quoted in the 102 1/16 to 1023/8 context.
The new credit, which backs Del Monte's acquisition of certain businesses from H.J. Heinz, drew in roughly 90 investors. The oversubscribed "B" loan was flexed down 1/4% to LIBOR plus 33Ž 4% (LMW, 12/16). Bank of America, J.P. Morgan, UBS Warburg, BMO Nesbitt Burns and Morgan Stanley led the $1.4 billion deal. David Meyers, cfo, could not be reached by press time.