Chiquita amends loan, increasing revolver size, changing financial covenants

By Sara Rosenberg

New York, June 9 - Chiquita Brands International Inc. amended its credit facility, increasing the revolver size by $50 million to $200 million and changing some financial covenants, according to an 8-K filed with the Securities and Exchange Commission Friday.

The leverage ratio was modified to be no greater than 3.25 to 1.0 at the end of any fiscal quarter ended on or after June 30 through and including the fiscal quarter ending on March 31, 2007, and no greater than 3.00 to 1.0 at the end of any fiscal quarter ending thereafter.

In addition, the consolidated leverage ratio was changed to be no greater than 6.00 to 1.0 at the end of any fiscal quarter ended on or after June 30 through and including the fiscal quarter ending on March 31, 2007, no greater than 5.75 to 1.0 at the end of the fiscal quarter ending on June 30, 2007, to be no greater than 5.50 to 1.0 at the end of the fiscal quarter ending on Sept. 30, 2007 or Dec. 31, 2007, and no greater than 5.25 to 1.0 at the end of the fiscal quarter thereafter.

Furthermore, the pricing grid for the company's term loan B and term loan C was revised (see table), although the current effective interest rate did not change as a result.

The amendment is effective as of June 7.

Wachovia is the administrative agent on the deal.

Chiquita is a Cincinnati-based distributor and marketer of bananas and fresh produce products.

Table: Pricing Grid

Consolidated Leverage Ratio Applicable Margin for Libor Loans under Term Loans

<3.50 200 bps

>3.50<5.25 225 bps

>5.25 250 bps

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