Dole Food Co. (DOLE), the fresh fruit and vegetable producer, plans to meet with lenders this week on a portion of the $1.15 billion financing backing the company’s purchase by Chief Executive Officer David Murdock.
A meeting is scheduled for Oct. 9 to discuss a $675 million seven-year term loan, according to a person with knowledge of the transaction, who asked not to be identified because terms of the financing aren’t set. The loan is covenant-light, meaning it wouldn’t carry financial-maintenance requirements that help protect lenders.
Murdock agreed in August to take Dole private in a deal valuing the Westlake Village, California-based company at $1.6 billion.
Deutsche Bank AG, Bank of America Corp. and Bank of Nova Scotia (BNS) are providing $1.15 billion of debt to help pay for the acquisition. The financing also includes a $325 million senior unsecured bridge and $150 million revolving credit line, according to a regulatory filing on Oct. 3.
The term loan Dole is seeking may pay interest at 3.75 percentage points more than the London interbank offered rate, the company said in the filing. The interest-rate margin may change during the syndication of the deal financing, the company said.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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