Multinational fresh produce company Fresh Del Monte Produce has secured a new US$500m loan, to be repaid within five years, it has revealed.
Announcing the deal, the group confirmed it has entered into the senior unsecured revolving credit facility with Bank of America, having arranged the loan through thre bank's investment banking division Bank of America Merrill Lynch.
Set to mature on 25 October 2017, the interest rate due on the loan is understood to be pegged to the London Interbank Offered Rate – an interest rate currently set at !.25 per cent and based on the average rates at which several international banks in the UK capital lend to each other – plus a margin that will vary in line with the company's leverage ratio.
"This credit facility replaces the company's existing revolving credit facility scheduled to mature 17 January 2013," Del Monte said in a statement.
"The credit facility also includes a swing line facility. The company intends to use funds borrowed under the credit facility from time to time for general corporate purposes, which may include the repayment, redemption or refinancing of the company's existing indebtedness, working capital needs, capital expenditures, funding of possible acquisitions, possible share repurchases and satisfaction of other obligations of the company."
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