Key Takeaways
- Del Monte Corporation (NYSE: DMC) amended its senior unsecured revolving credit facility, raising total commitments by $150 million to $900 million.
- The amended facility keeps its existing maturity date of February 21, 2029, along with largely unchanged terms, including a $50 million swingline sub-facility.
- An accordion feature remains in place, letting Del Monte Corporation request additional revolving commitments or incremental term loans, subject to lender commitments and other conditions.
- The company said the added capacity will help fund seasonal working capital needs and support the integration of a recently completed acquisition.
- Chairman and CEO Mohammad Abu-Ghazaleh said the amendment strengthens the company's liquidity position while preserving the facility's existing terms.
Del Monte Corporation Expands Its Credit Facility
Del Monte Corporation (NYSE: DMC) has amended its existing senior unsecured revolving credit facility, raising total commitments by $150 million to bring the facility to $900 million. The added borrowing capacity comes as the company works through the integration of a recently completed acquisition and manages the seasonal swings in its working capital needs.
Terms of the Amended Facility
The amended facility keeps its original maturity date of February 21, 2029, and its terms and conditions remain largely the same as before the increase. That includes a $50 million swingline sub-facility, which gives the company access to short-term same-day funds, and an accordion feature that was already part of the agreement. The accordion provision allows the company, subject to lender commitments and certain other conditions, to request further revolving commitments or incremental term loans. The facility remains unsecured and can be used for general corporate purposes such as working capital, capital expenditures, acquisitions and other strategic initiatives.
Del Monte Corporation Cites Acquisition Integration, Seasonal Needs
Del Monte Corporation said the expanded commitments give it more room to manage the financial demands tied to its recent acquisition while also covering the working capital swings that come with the seasonal nature of its business.
CEO Comments on Liquidity Strength
Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer of Del Monte Corporation, said the change builds on the company's existing financial position.
“This amendment further strengthens our liquidity position while maintaining the attractive terms of our existing credit facility,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “The additional capacity provides us with greater financial flexibility to support our growth strategy, fund seasonal working capital needs, and continue executing on the successful integration of our recent acquisition.”
With the amendment in place, Del Monte Corporation's revolving credit facility now stands at $900 million, unchanged in structure but larger in scale, as the company continues to fund its operations and growth plans.
