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Dole Food Said to Set Rate on $625 Million of Refinancing Loans

April 12 (Bloomberg) -- Dole Food Co., the world’s biggest producer of fresh fruit and vegetables, set the rate on $625 million of loans it’s seeking to refinance debt, according to two people with knowledge of the matter.

A $500 million term loan B and $125 million delayed-draw piece, both due in seven years, will pay interest at 3 percentage points to 3.25 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, said the people, who asked not to be identified because the deal is private.

The debt may be sold to investors at 99.5 cents on the dollar to par, one of the people said.

Lenders must let Deutsche Bank AG, Wells Fargo & Co., Bank of America Corp., Rabobank and Bank of Nova Scotia, the banks arranging the financing, know by April 25 whether they will participate in the deal, that person said.

Moody’s Investors Service last week graded the proposed facilities, including a $150 million, five-year revolving line of credit, Ba3, it said in an April 3 statement. The ratings firm said it expects the delayed-draw term loan to be drawn within the next six months.

Standard & Poor’s assigned a B+ rating to the proposed debt on April 2.

In a revolving line of credit, money can be borrowed again once it’s repaid; in a term loan it can’t.

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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