Research Update: Del Monte Foods Inc. Downgraded On Current Maturities; Outlook Revised to Negative

U.S.–based Del Monte Foods Inc.'s (DMFI) $710 million first-lien term loan became a current obligation on February 18, 2020. The $442.5 million ABL facility became current in November of 2019. Its parent, DMPL and the group has an additional $187 million of debt maturities in 2020 that also need to be addressed in the near-term. Del Monte had launched a $575 million bond refinancing transaction, but will postpone the offering due to the volatility in the markets driven by the coronavirus. We believe that it will take longer than previously expected to complete a refinancing with reasonable terms given the company's current standing in the credit markets and uncertain market conditions. As a result, we are lowering our issuer credit

...- U.S.¡based Del Monte Foods Inc.'s (DMFI) $710 million first-lien term loan became a current obligation on February 18, 2020. The $442.5 million ABL facility became current in November of 2019. Its parent, DMPL and the group has an additional $187 million of debt maturities in 2020 that also need to be addressed in the near-term. - Del Monte had launched a $575 million bond refinancing transaction, but will postpone the offering due to the volatility in the markets driven by the coronavirus. We believe that it will take longer than previously expected to complete a refinancing with reasonable terms given the company's current standing in the credit markets and uncertain market conditions. - As a result, we are lowering our issuer credit rating on DMFI to '###' from '###+'. At the same time, we are revising the outlook to negative. - Concurrent with the lowering the issuer credit rating, we are lowering our issue-level rating on the company's first lien term loan to '###' from '###+'. The...

Research Update