Dakota Growers closes on financing, tender offer
May 11, 2007
by Eric Schroeder
CARRINGTON, N.D. — Dakota Growers Pasta Co., Inc. successfully closed its previously announced financing transaction and tender offer. As part of the action, Dakota Growers closed on the sale of one million shares of its Series F convertible preferred stock to MVC Capital, Inc., the sale of one million shares of common stock to LaBella Holdings L.L.C., and received $20 million in loan proceeds under a term loan agreement with CoBank.
The actions generated $38.8 million for Dakota Growers Pasta, which the company said it will use to purchase 3,920,000 shares of its common stock.
Under terms of its tender offer, Dakota Growers Pasta said it will follow a prioritized action list for purchasing shares, beginning with buying all tendered shares from shareholders that own less than 1,000 shares. Second, the company will buy the greater of 1,000 shares of common stock or 29.8% of a tendering shareholders’ total ownership. Finally, the company will purchase shares on a pro rata basis.