RLPC: Dole Food sets Wednesday launch for $675M LBO loan

NEW YORK Mon Oct 7, 2013 11:17am EDT

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NEW YORK Oct 7 (Reuters) - Vegetable and fruit producer Dole Food Co Inc is launching a $675 million, seven-year term loan B Wednesday to back Dole's buyout by Chairman and Chief Executive Officer David H. Murdock, sources told Thomson Reuters LPC. The new loan will launch at a 1 p.m. EST lunch meeting in New York City.

The new TLB is expected to be covenant-lite, and will carry 101 soft call protection.

Deutsche Bank is lead left arranger, with Bank of America Merrill Lynch and The Bank of Nova Scotia to the right.

On August 12, Dole announced an agreement where Murdock, through his affiliates, will purchase all outstanding stock of Dole he does not currently own for $13.50 per share, valuing the company at approximately $1.6 billion.

Dole received financing commitments for the $675 million Term Loan B, a $150 million, five-year asset-based lending revolver, and a $325 million senior unsecured bridge loan to back the LBO, according to an August SEC filing.

The filing outlined a $200 million common equity financing commitment from Murdock. The transaction is expected to close during the fourth quarter of 2013.

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