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Campos family taps $100M loan from BPI for Del Monte Pacific

09:16 AM February 09, 2015

THE CAMPOS family is availing of a $100 million term loan from Ayala-led Bank of the Philippine Islands to subscribe to the stock rights offering of food conglomerate Del Monte Pacific Ltd. (DMPL).
The loan will be secured by the family’s shares in DMPL with collateral value of not less than 200 percent of the loan amount and dividends accruing from the shares equivalent to an agreed percentage of the loan amount, based on a disclosure to the Philippine Stock Exchange on Monday.
The borrowing party is NutriAsia Pacific Ltd., which has agreed to enter into a share charge agreement to be constituted in favor of the Hongkong and Shanghai Banking Corporation Ltd. as security agent over the former’s ordinary shares in DMPL.
NutriAsia will be required to provide additional security as necessary to maintain the 200 percent collateral value, the disclosure said.
The share cover will constitute about 849.99 million or 65.28 percent of DMPL’s issued share capital before the rights issue and about 43.72 percent of the food company’s enlarged share capital after the rights issue, the disclosure said.
DMPL is raising as much as $180 million from a stock rights offering to be dually launched in the Philippines and Singapore. The offering is part of DMPL’s plans to pare down debt related to
its $1.675-billion acquisition of the consumer food business of American corporation Del Monte Foods (DMFI). This leveraged buy-out allowed DMPL to break into the American market and reunite with its mother brand in the United States.

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TAGS: BPI, Campos, del monte pacific, DMPL, Nutri-Asia
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