Chiquita Brands International has announced that its main operating subsidiary has successfully completed a new five-year $150 million secured revolving credit facility. “This credit facility provides ample liquidity and flexibility to successfully operate our business and deliver on our sustainable growth strategy," said Jay Braukman, chief financial officer. "Our banking partners, with their unique knowledge of our industry and important franchises in Europe and the United States, have recognized our very strong balance sheet and given Chiquita a vote of confidence."

Proceeds from the loans available under the credit facility may be used for working capital, capital expenditures and other general purposes, including acquisitions. The interest rate is based on prevailing US or LIBOR market rates. The initial interest rate will be LIBOR plus 1.50 per cent which may be adjusted based on future debt levels of the operating subsidiary. The loan is secured by liens on substantially all of the tangible and intangible assets of the borrower and its US subsidiaries and by pledges of stock of the borrower and certain of its subsidiaries.

No revolving loan borrowings have been made to date; however, approximately $8m of previously issued letters of credit are now deemed to be issued under the credit facility.

The facility has been arranged with Wells Fargo Bank as co-lead arranger and administrative agent and Wachovia Securities as co-lead arranger and syndication agent. The credit facility may be increased up to $200 million under certain conditions. The other members of the bank syndicate are Rabobank International; Harris Nesbitt; LaSalle Bank, a subsidiary of ABN-AMRO; ING Bank; and Nordea Bank.