Fresh Del Monte Produce refinances credit facility

Fresh Del Monte Produce Inc has refinanced its existing credit facility and term loan with a new $500 million senior secured revolving credit facility.

This new credit facility has a 3.5-year term, with a scheduled maturity date of January 17, 2013. The facility bears interest at a rate of Libor plus a margin that varies with the company’s leverage ratio; the current margin for Libor advances is 3.0%. This facility replaces the company’s existing revolving credit facility and term loan scheduled to mature in November 2009 and May 2011, respectively.

The new credit facility also includes a swing-line facility and a letter of credit facility with a $100 million sublimit. Used to refinance the existing credit facility and term loan, it has $333.4 million outstanding, comprised of $304.3 million in loans and $29.1 million applied to the letter of credit facility. Unused commitments of $166.6 million are available for working capital needs, general corporate purposes, and other uses. The facility was arranged and syndicated by Rabobank.

“We are extremely pleased with the terms of our new credit facility and strong response from lenders,” said Mohammad Abu-Ghazaleh, Fresh Del Monte chairman and chief executive officer. “The offering was significantly oversubscribed and is indicative of our strong credit quality. This refinancing demonstrates our ability to raise funds at attractive rates in a very tight loan market. We believe the new credit facility provides a more than ample cushion for our liquidity needs based on the company’s current financial projections.”

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