This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chiquita Announces Proposed Refinancing

CINCINNATI, June 27, 2011 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. (NYSE: CQB) today announced that it has commenced a refinancing of a portion of its existing indebtedness, including its 8 7/8% Senior Notes due 2015 and existing Senior Credit Facility. As part of the refinancing, the company has commenced a cash tender offer (the "Offer") for $100 million of approximately $177 million outstanding aggregate principal amount of its 8 7/8% Senior Notes due 2015 (CUSIP No. 170032AS5) (the "Notes"). The terms of the Offer are described in the Offer to Purchase, dated June 27, 2011 (the "Offer to Purchase"), and a related Letter of Transmittal (the "Letter of Transmittal"), which are being sent to holders of Notes.

The Offer is being conducted in connection with the company's efforts to enter into a new senior credit facility which is expected provide for a new $250 million term loan and a $150 million revolving credit facility to replace its existing revolving line of credit. The net proceeds from the new term loan will be used to refinance the approximately $155 million that will then be outstanding under the company's current term loan and to fund, together with available cash, the purchase of the tendered Notes that are accepted for purchase pursuant to the Offer.

Holders must validly tender and not validly withdraw their Notes prior to the early tender deadline of 5:00 p.m., New York City time, on July 11, 2011, unless extended (the "Early Tender Deadline"), in order to be eligible to receive the "Total Consideration." The Total Consideration will equal $1,033.33 per $1,000 principal amount of Notes, which includes an early tender payment of $10 per $1,000 principal amount of Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the payment date for the Notes.

The Offer expires at 8:00 a.m., New York City time, on July 26, 2011 unless extended (the "Expiration Date"). Holders who validly tender their Notes after the Early Tender Deadline but on or prior to the Expiration Date shall be eligible to receive the "Tender Offer Consideration" equal to $1,023.33 per $1,000 principal amount of Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the payment date for the Notes. Holders of Notes tendered after the Early Tender Deadline will not be eligible to receive the early tender payment.

The Early Tender Deadline and the Expiration Date may be extended, and the company may withdraw or not complete the Offer. Except in certain circumstances, Notes tendered may not be withdrawn after 5:00 p.m., New York City time, on July 11, 2011.

The aggregate principal amount of Notes purchased in the Offer will be subject to proration and other terms set forth in the Offer to Purchase. If the aggregate principal amount of Notes tendered exceeds $100 million, the sum of each holder's validly tendered Notes accepted for purchase will be determined by multiplying each holder's tender by the proration factor, and rounding the product to the nearest $1,000. The proration factor will be determined by the company as soon as practicable after the Expiration Date and announced by press release or other permitted means.

The Offer is subject to a number of conditions that are set forth in the Offer to Purchase, including, without limitation, the receipt by the company of net proceeds from one or more debt financings, which may include the new senior secured credit facility, that together with $12 million of available cash are sufficient to pay the total consideration (including the early tender payment) for the tender of at least $100 million aggregate principal amount of Notes plus estimated fees and expenses relating to the Offer.

The company's obligations to accept any Notes tendered and to pay the consideration for them are set forth solely in the Offer to Purchase and the Letter of Transmittal. There can be no assurance that the company will consummate one or more new debt financings or that the proceeds therefrom, when combined with the company's other available funds, will be sufficient to pay the total consideration in connection with the Offer.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs