- Del Monte has also entered into a two-year Operating Services Agreement with Dongwon where Del Monte will provide various operational services, such as warehousing, distribution, transportation, sales, IT and administration to the transferred business. This agreement is expected to offset the majority of fixed infrastructure costs retained by Del Monte in fiscal 2010. The benefit from the Operating Services Agreement coupled with the interest savings from planned debt reduction should cause the transaction to be essentially neutral to Del Monte's EPS in fiscal 2010.
- The transaction generates net after-tax cash proceeds of approximately $300M, which will be applied toward debt reduction in accordance with the Company's Credit Agreement dated as of February 8, 2005, as amended through April 25, 2008. The Company's projected Debt to EBITDA ratio for year-end fiscal 2009 is expected to improve to approximately 3.6x from approximately 4.0x due to the deleveraging impact of this transaction.

Other headlines for [DLM]

• DLM 12/9/2008 08:49am
  Del Monte Foods Co S&P raises subordinated debt rating to BB- from B+, on a stable outlook- The outlook on Del Monte is stable. We expect Del Monte will apply its free cash flow to debt reduction and maintain leverage more...
  
• DLM 12/4/2008 08:34am
  Del Monte Foods Co Price target cut to $7.00 from $7.50 at Merrill Lynch
  
• DLM 12/4/2008 07:47am
  Del Monte Foods Co Stephens Raised DLM to Overweight from Equal Weight, price target: $9
  
• DLM 12/3/2008 10:29am
  Del Monte Foods Co Guides Q3 EPS lower y/y v $0.24e (Q307 EPS of $0.26) -conf call
  
• DLM 12/3/2008 08:00am
  Del Monte Foods Co Reports Q2 $0.14 v $0.12e, R $901M v $905.0Me- Guides FY09 EPS toward the midpoint $0.58-0.62 v $0.57e., Rev +8-10% (implying $3.46-3.52B v $3.52Be) - Consumer products +6.1% y/y to $491.9M - Pet more...
  

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