US fresh produce giant Chiquita Brands International has revealed it will buy back all of the debt outstanding on bonds – referred to as 8 7/8 per cent senior notes – due for repayment in 2015.
The company had earlier said it would make a cash tender offer for US$100m of the approximately US$177m outstanding on the senior notes, but has since confirmed that it has increased its maximum offer to the full amount due.
Having received tenders from bondholders worth some US$131m (74 per cent) as of 17:00 EDT on 11 July 2011, Chiquita has also opted to extend its early tender deadline to 08:00 EDT on 26 July 2011.
Bondholders who tendered their senior notes prior to the early tender deadline are eligible to receive US$1,033.33 for every US$1,000 in noted they hold, a sum which includes an early tender payment of US$10 per US$1,000 principal amount, plus any interest payments due.
Chiquita said it expected to fund debt refinancing in part with the net proceeds from a new senior secured credit facility, along with available cash.
The company has employed Bank of America Merrill Lynch and Barclays Capital to manage the offer.
No comments yet