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Chiquita plans convertible senior note offering to pay down loans
By Evan Weinberger
New York, Jan. 28 - Chiquita Brands International Inc. is considering issuing convertible senior unsecured notes to repay debt on an existing term loan, the Cincinnati-based fruit and vegetable distributor said Monday.
Chiquita currently has $326 million outstanding on a term loan C and a $200 million revolving credit facility for seasonal working capital. The company drew $31 million from that facility as of Dec. 31.
Chiquita also said that it was seeking approval for changes to the terms of its existing 7.5% senior notes due 2014.
The announcement came in conjunction with a preliminary report on its fourth quarter earnings that showed an approximately 4% increase in sales in 2007 over 2006.
In October, Chiquita announced around 700 layoffs, facility closings and plans to leave certain business sectors as part of a cost-cutting plan. Around 160 of those job cuts were at the management level. Chiquita said in October that it wanted to cut costs by $60 million to $80 million.
Chiquita said it is also exploring alternatives, including a possible sale, for its German operation, Atlanta AG.
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