...October 6, 2022 NEW YORK (S&P Global Ratings) Oct. 6, 2022--S&P Global Ratings today affirmed its 'B' issue-level rating on Del Monte Foods Inc.'s $600 million senior secured term loan after the company upsized its revolving credit facility to $625 million from $450 million and extended the maturity to September 2027 from April 2026. The recovery rating remains '3' (50%-70%; rounded estimate: 50%). The increase in the asset-based lending (ABL) revolving facility's commitment raises the priority debt outstanding in Del Monte's capital structure and reduces the net value available to term loan creditors, resulting in a lower recovery percentage (from 55%). The ratings are unchanged. We believe the incremental availability under the ABL will support the company's seasonal working capital buildup ahead of its packing season. It will also enable it to make payments to parent Del Monte Pacific Ltd. for working capital support and funds acquired for the acquisition of Kitchen Basics, while maintaining...
