Chiquita notes could be repurchased if it accepts offer to be acquired

By Angela McDaniels

Tacoma, Wash., Aug. 11 – Chiquita Brands International, Inc. has received a proposal to be acquired that would trigger a put option for its 4¼% convertible senior notes due 2016 at par and a change-of-control offer for its 7 7/8% senior secured notes due 2021 at 101% of par.

Cutrale Group and Safra Group offered $13.00 a share for Chiquita, which is a 29% premium to its closing share price on Friday. The transaction would be financed with equity provided by Cutrale and Safra, according to a news release from the companies.

The potential acquirers said they would provide the additional capital needed to buy back the notes.

The offer is contingent on Chiquita terminating its planned combination with Fyffes, plc, a Dublin-based importer and distributor of tropical produce.

In a separate news release, Chiquita said that it will review the offer from Cutrale and Safra and that it continues to “strongly believe in the strategic merits and value provided by the proposed transaction with Fyffes.”

Cutrale Group, an agribusiness and juice company based in Araraquara, Brazil, and Safra, an investment company based in Sao Paolo, asked that Chiquita respond to their offer by Friday.

Chiquita is a Charlotte, N.C.-based marketer and distributor of bananas, fresh produce and packaged salads.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.