Del Monte Pacific plans to issue 36m preferred shares at US$10 per share as part of efforts to raise funds in order to refinance debt.
The company, which is listed in the Philippines and Singapore, is seeking approval for the listing from the securities and exchange commission in the Philippines where the new shares will be listed.
In a regulatory filing, Del Monte Pacific said it is targeting an offering in early December.
The group intends to use proceeds to refinance debt that was taken on to fund the $1.68bn acquisition of Del Monte Foods’ consumer foods arm last year. The company took control of the Del Monte canned food business for $1.68bn last year.
Estimated net proceeds of $351.4m will be used to refinance a $350m bridge loan facility, the group revealed.
The preferred share sale is part of a series of fund raising initiatives to reduce Del Monte Pacific’s borrowings by approximately $520m. The company today completed a separate listing of common shares that raised PHP93.5m (US$2m). The offer was over subscribed, Del Monte Pacific said.
After the planned preferred share sale, the group also intends to undertake a rights offer.