Dole Food Company expects to make an annual saving of around US$23m in interest payments after refinancing its debt, the company has revealed.
According to a statement issued by the US-based company, the revised arrangements mean that the earliest any of its loan facilities will mature is 2013.
In addition, the refinancing provides for the redemption of the remaining US$70m principal of senior notes due next year.
The amended credit facilities provide US$850m of term debt due in 2017 and up to US$350m of revolving debt due 2014.
As of 3 March, just as at the end of fiscal year 2009, Dole has no borrowings outstanding on the revolving credit facility, the company noted.
David DeLorenzo, Dole's president and chief executive said the group was 'very pleased' with the successful execution of amendments to its credit facilities.
'This is another major milestone on our planned route toward increased earnings and reduced debt,' he commented. 'The reduction of our interest expense by approximately US$23m per annum will directly improve our earnings.'
He added: 'The interest rates that we achieved with these amendments are at the favourable end of the pricing ranges that had been discussed.'
The amendments are also predicted to increase Dole's operating and financial flexibility going forward.
'With the redemption of the remaining US$70m principal amount of our senior notes due 2011 using proceeds of these credit facilities amendments, our next scheduled maturity will be in 2013, when US$155m principal amount of our debentures will come due,' Mr DeLorenzo noted.
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