Dole Food Gets $1.15 Billion Debt Commitment for Murdock Buyout

Dole Food Co. (DOLE), the fresh fruit and vegetable producer, obtained a $1.15 billion financing commitment to support the company’s buyout by Chairman and Chief Executive Officer David H. Murdock.

Deutsche Bank AG, Bank of America Corp., and Bank of Nova Scotia (BNS) are arranging the debt, Westlake Village, California-based Dole said in a regulatory filing today.

Murdock is acquiring all outstanding shares of Dole for $13.50 in cash per share in a transaction valued at $1.6 billion, the company said today in a statement distributed by Business Wire. The deal, which is expected to close during the fourth quarter, will also be financed with equity contributed by Murdock.

Dole has $673.3 million outstanding under a term loan due in April 2020 that it obtained in May, according to data compiled by Bloomberg. The debt pays interest at 2.75 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, the data show.

The loan was quoted this morning at 100.125 cents on the dollar, according to prices compiled by Bloomberg.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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