Chiquita Brands International has announced the completion of its sale of US$425m of 7.875 per cent senior secured notes, due in 2021, and has also confirmed its entry into a new US$200m senior secured credit agreement.
The notes were offered in the US to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the US to certain non-US persons in accordance with Regulation S under the Securities Act.
The notes and the related subsidiary guarantees have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
Accoridng to the company, the notes were co-issued by Chiquita Brands L.L.C., the company's main operating subsidiary, and unconditionally guaranteed at closing by each of the company's existing direct and indirect domestic subsidiaries, other than de minimis subsidiaries, and certain of the company's future direct and indirect domestic subsidiaries.
The secured credit facility has a maximum borrowing capacity of US$200m, including a revolving credit facility and a US$7.5m term loan, subject to a borrowing base calculation based on specified advance rates against the value of the company's domestic accounts receivable, foreign accounts receivable, certain inventory, and certain domestic machinery and equipment.
