NOTE 5. STOCKHOLDERS’ EQUITY


On February 10, 1999, Del Monte’s public equity offering, consisting of 16,667,000 shares of common stock sold by Del Monte and 3,333,000 shares of common stock sold by certain stockholders of Del Monte, was consummated at an initial offering price of $15.00 per share. Del Monte received net proceeds of $229.7. Total common shares outstanding after the offering were 52,163,943. Del Monte used a portion of the net proceeds from the offering to redeem $45.6 (100%) of its preferred stock, including $2.3 of unamortized discount, $10.0 of accreted dividends and $0.7 of redemption premium. The remainder of the net proceeds of the offering was used to redeem notes and repay debt (see Note 4).

The terms of Del Monte’s debt limit the ability of Del Monte’s subsidiaries to distribute cash or other assets, which could affect Del Monte’s ability to pay dividends or make other distributions on the common stock.