Chiquita launches consent solicitation for 7½% notes

By Angela McDaniels

Tacoma, Wash., Jan. 28 - Chiquita Brands International, Inc. said it began soliciting consents from holders of its 7½% senior notes due 2014.

The consents are needed to amend provisions in the note indenture that affect the company's ability to incur certain liens, according to a company news release.

The solicitation is being held in connection with a proposed refinancing of Chiquita's senior credit facility that is intended to lower its interest expense, extend maturities and provide additional covenant flexibility.

The record date is Jan. 25, and the consent solicitation will expire at 5 p.m. ET on Feb. 4.

The company is offering a consent fee of $20 per $1,000 principal amount of notes.

The consent solicitation is conditioned on the receipt of consents from holders of at least a majority of the notes, the receipt of at least $125 million in proceeds from a senior unsecured convertible debt issuance by Feb. 15 and other conditions.

Morgan Stanley & Co. Inc. (800 624-1808) is the solicitation agent, and Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the information agent.

Chiquita is a Cincinnati-based marketer and distributor of fresh and value-added food products.

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