Research Update: Del Monte Foods Inc. Upgraded To 'CCC+' On Refinancing Of Capital Structure; $500 Million Senior Notes Rated 'CCC+'

U.S.–based Del Monte Foods Inc.(DMFI) closed a $500 million senior secured note offering and a new $450 million asset-based lending (ABL) facility (unrated) to refinance current obligations of its existing capital structure. The complete refinancing includes the former $260 million second-lien term loan, previously repurchased through parent DMPL to be taken out at the group level with equity sale proceeds from a subsidiary of the group Del Monte Philippines Inc. In addition, DMPL will use $150 million newly committed three-year bridge loans to fund new common shares at DMFI. S&P Global Ratings is raising the issuer credit rating to 'CCC+' from 'CCC'. We are removing the rating from CreditWatch, where we placed it with positive implications on April 30, 2020.

...- U.S.¡based Del Monte Foods Inc.(DMFI) closed a $500 million senior secured note offering and a new $450 million asset-based lending (ABL) facility (unrated) to refinance current obligations of its existing capital structure. - The complete refinancing includes the former $260 million second-lien term loan, previously repurchased through parent DMPL to be taken out at the group level with equity sale proceeds from a subsidiary of the group Del Monte Philippines Inc. In addition, DMPL will use $150 million newly committed three-year bridge loans to fund new common shares at DMFI. - S&P Global Ratings is raising the issuer credit rating to '###+' from '###'. We are removing the rating from CreditWatch, where we placed it with positive implications on April 30, 2020. We no longer envision default scenarios in the next 12 months as the capital structure of DMFI has been refinanced and all transactions mentioned above are completed. Additionally, this incorporates our expectation for the $187...

Research Update