Del Monte Pacific subsidiary raises US$1.3 billion

Tay Peck Gek

Published Sun, May 17, 2020 · 12:57 PM

DEL Monte Pacific's subsidiary has raised total financing of US$1.3 billion through a mix of equity and loans, with the bulk of the funds to go towards refinancing the subsidiary's existing loan facilities of approximately US$1.1 billion.

The company pumped US$378 million in equity into its United States unit Del Monte Foods in the fund-raising exercise, Del Monte Pacific said in a regulatory filing to Singapore Exchange on May 16. This took the forms of US$150 million in new equity in the holding company of Del Monte Foods and the conversion of US$228 million of second-lien repurchase Loans into common equity in Del Monte Foods.

Additionally, Del Monte Foods issued US$500 million aggregate principal amount of 11.875 per cent senior secured notes due 2025, with original issue discount equal to 3 per cent of the principal amount. The notes were offered to qualified institutional buyers within the United States and to non-Americans in offshore transactions.

Also, it has entered into a US$450 million asset-based loan facility due 2023.

Del Monte Foods is a producer, distributor, and marketer of premium quality, branded, plant-based food products for long shelf-life categories, primarily in the US.

Del Monte Pacific shares were 0.1 Singapore cent lower at S$0.101 on Friday, a day before this announcement was made.