Total Produce completes $1.4B refinancing amid Dole merger

Total Produce completes $1.4B refinancing amid Dole merger

Total Produce completes $1.4B refinancing amid Dole merger

Ireland-based Total Produce, which is merging with Dole Foods, has completed a US$1.44 billion refinancing.

The company announced on Wednesday that it has entered into a deal with New York-based Coöperatieve Rabobank that provides for a $500 million five-year committed multi-currency senior secured revolving credit facility, which is available to Total Produce and its co-borrowers.

The credit agreement also provides for a $940 million seven-year U.S. dollar senior secured term loan facility with Bank of America. This will be available upon the consummation of certain conditions, including the closing under the transaction agreement for the combination of Total Produce and Dole Food Company, Inc., under a newly created U.S.-listed company, Dole.

Upon the completion of the Transaction, the revolving credit facility will be available to Dole and certain of its subsidiaries, and the term loan facility will be available to Total Produce USA Holdings Inc.

Proceeds of the facilities will be used to refinance the existing Total Produce and Dole debt agreements, with the exception of the Dole vessel financing and certain other group bilateral facilities which will remain post completion of the Transaction.

"The Facilities are expected to provide long-term sustainable capitalisation following the completion of the Transaction, lowering the combined company’s average cost of capital and creating a stronger balance sheet," Total Produce said.

Total announced plans to merge with Dole Foods in February this year to create the world’s largest fresh fruit and vegetable supply business with $10 billion in sales.

The combined company, operating under the Dole brand, will be incorporated in Ireland, with its global headquarters in Dublin, but it will be listed in the US.

Coöperatieve Rabobank U.A. is the sole book-runner and sole lead arranger for the revolving credit facility and Bank of America Securities, Inc., Coöperatieve Rabobank U.A. and Goldman Sachs Bank USA are the joint book-runners and joint lead arrangers for the term loan facility.

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