US fresh produce group Chiquita Brands International has announced that it has started refinancing a portion of its existing debt, including the company’s 8.875 per cent senior notes.
As part of the refinancing, Chiquita is making a cash tender offer for US$100m of the US$177m outstanding on the senior notes – a form of bonds – which are due for repayment by 2015.
The offer is being carried out in connection with the company’s efforts to enter into a new senior credit facility that is expected to provide for a new US$250m term loan and a US$155m credit facility to replace its current revolving line of credit.
The net proceeds from the new-term loan will be used to refinance the estimated US$155m that will then be outstanding under Chiquita’s current term loan and to fund, together with available cash, the purchase of tendered bonds.
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