Del Monte Pacific

[CityFarmer]

This is an LBO. Group EBITDA of US$21.5m can't even cover interest expense of US$23.9m is indeed worrisome with cash of just US$28.5m. Cash call have to come sooner rather than later.

Here it comes...

Base on the official announcement, the discount is 20% to 25% to a reference price, which is pretty high IMO.

A right of 642 mil new share, vs. existing share base of 1.3 billion shares. What a dilution for those not subscribing...

http://infopub.sgx.com/FileOpen/DMPL%20-...eID=329020

(not vested)

Del Monte Pacific plans sale of 642 mil new shares in Singapore, Philippines

SINGAPORE (Dec 22): Del Monte Pacific ( Financial Dashboard) revealed more details about its planned rights issue.

The pineapple, tomato and fruit juice company, said it intends to sell up to 641.9 million new shares in the Singapore and Philippines stock markets to raise US$180 million ($237.4 million).

Del Monte Pacific is using the net proceeds of the rights issue to repay the bridging facility of US$165 million from the Bank of Philippines Islands that the company had obtained to partially finance the acquisition of Del Monte Foods which was completed in February.

Del Monte Pacific said the company is not in a position to fix the rights price at the time of the announcement as this has yet to be agreed upon among the lead managers and underwriters for the Singapore and Philippines rights issue and the company.

DBS Bank ( Financial Dashboard) has been appointed as the lead manager and underwriter for Singapore while the company intends to appoint BPI Capital Corporation as the lead manager and underwriter for the Philippines rights issue.

Substantial and controlling shareholder NutriAsia Pacific Ltd (NPL) which holds a 66.76% stake in Del Monte Pacific intends to subscribe to its entitlements in the rights issue.

Del Monte Pacific closed flat at 50 cents today.
http://www.theedgemarkets.com/sg/article...hilippines