Chiquita resets launch for $400 million credit facility for Friday

By Sara Rosenberg

New York, Feb. 20 - Chiquita Brands International Inc. pushed out the bank meeting for its proposed $400 million six-year credit facility (B+) to 9:30 a.m. ET on Friday from Wednesday, according to a market source.

In addition, the meeting will now take place in New York as opposed to Cincinnati, since New York is where most people are located, the source said.

The reason for the two-day delay of the launch is because the company was so focused on putting out earnings on Tuesday that it needed more time to prepare for the bank meeting, the source added.

Rabobank is leading the deal that will be marketed to banks.

The facility consists of a $200 million revolving credit facility and an amortizing $200 million term loan A.

Possible price talk of Libor plus 325 basis points emerged on both tranches last week.

Upfront fees have not yet been disclosed.

The agreement governing the new credit facilities contains two material financial maintenance covenants, an operating company leverage ratio and a fixed-charge coverage ratio, both of which will be set at levels that provide significant added flexibility.

Proceeds will be used to help refinance the company's existing $200 million revolver and $326 million term loan C.

Also helping repay the term loan C are proceeds from a recently completed $200 million 4.25% convertible senior notes offering.

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

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