Tue, Nov 19, 2019 – eight:31 AM
LOSS-MAKING meals and beverage participant Del Monte Pacific is evaluating choices to doubtlessly refinance its US subsidiary’s mortgage amenities of about US$1.four billion.
The subsidiary, Del Monte Meals Inc (DMFI), has loans comprising a US$442.5 million asset-based facility due in November 2020, a US$670 million first-lien time period mortgage due in February 2021, and a US$260 million second-lien time period mortgage due in August 2021.
The group has been supporting DMFI’s capital construction necessities and deleveraging efforts, together with the acquisition within the final 20 months of about US$231 million of the second-lien time period mortgage, Del Monte stated in a bourse submitting on Tuesday morning.
Del Monte additionally stated it expects to report a loss for Q2 FY2020 ending October 2019, because of one-off bills.
The group had earlier swung to a web lack of US$38.three million for Q1 ended July 31, in opposition to a revenue of US$three million a 12 months in the past.
On Tuesday, Del Monte additionally supplied an replace on DMFI’s “asset-light technique” first introduced in August this 12 months.
Underneath the technique, DMFI is making divestments at 4 manufacturing amenities within the US.
The primary, in Cambria, Wisconsin, has been bought and transitioned, with its associated workers, to Seneca Meals Company on Nov 1, Del Monte stated on Tuesday. This was bought as an working facility.
Two others, positioned at Sleepy Eye in Minnesota and at Mendota in Illinois, are anticipated to be closed and bought throughout This fall FY2020 ending April 2020. DMFI has entered into an settlement to promote each amenities.
For the fourth manufacturing facility in Crystal Metropolis, Texas, DMFI has bought gear and is contemplating different proposals to promote the remaining manufacturing belongings there.
Shares of Del Monte closed at 14.three Singapore cents on Monday, up zero.2 cent or 1.four per cent.
