Chiquita removes tender cap for 8 7/8% notes, extends early deadline

By Angela McDaniels

Tacoma, Wash., July 13 - Chiquita Brands International, Inc. increased the amount of notes it will accept in the tender offer for its 8 7/8% senior notes due 2015 to any and all of the $177 million outstanding principal amount, according to a company news release.

Before the change, the company planned to accept no more than $100 million of the notes.

The company also extended the early tender deadline to coincide with the expiration date, 8 a.m. ET on July 26. As a result, all holders who tender will receive an early tender payment of $10.00 per note.

As of the old early tender deadline, 5 p.m. ET on July 11, holders had tendered $131 million, or 74%, of the outstanding notes.

The company will pay $1,033.33 per $1,000 principal amount of notes, including the early tender payment. Holders will also receive accrued interest up to but excluding the payment date.

The company expects to conduct an early settlement on or about July 22. It will accept for payment any notes tendered as of 5 p.m. ET on the day before.

Chiquita said it might redeem any notes that remain outstanding after the tender offer.

The tender offer is conditioned on financing. The company is pursuing a new senior credit facility that includes a $250 million term loan and a $150 million revolving credit facility, and it expects to use proceeds to help fund the tender offer.

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

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