Fresh produce firm Total Produce has entered into a credit agreement worth $1.44 billion with Coöperatieve Rabobank U.A.
The agreement provides a $500 million five-year committed multi-currency senior secured revolving credit facility, available to Total Produce and its co-borrowers, the company said in a statement.
The deal also includes a $940 million seven-year US dollar senior secured term loan facility with Bank of America N.A., as administrative agent.
The amount will be available upon meeting certain conditions provided therein, including the completion of the previously announced transaction agreement for merging Total Produce and Dole Food Company, Inc. under a newly created US-listed company, Dole plc.
Revolving Credit Facility
Upon the completion of the merger, the revolving credit facility will be available to Dole plc and some of its subsidiaries, and the term loan facility will be available to Total Produce USA Holdings Inc, the company said.
Proceeds of the term loan will be used to refinance the existing Total Produce and Dole debt facilities.
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, Total Produce added.
Total Produce posted a 'very strong performance' in its 2020 financial year in spite of the 'unprecedented challenges posed by COVID-19'.
It reported a revenue growth of 1.7% for the year, to €6.26 billion, while adjusted EBITDA was up 8.2% to €219.4 million.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.