Chiquita to sell $150 million senior notes to back Fresh Express acquisition

By Paul A. Harris

St. Louis, March 18 - Chiquita Brands International Inc. said it plans to sell $150 million of senior notes to back the acquisition of the Fresh Express unit of Performance Food Group.

Morgan Stanley will have a role in the bond transaction, according to a market source, although structure and timing on the bond transaction are yet to be determined.

The company will also sell $75 million of convertible perpetual preferred stock as part of the same financing.

In addition, the company is obtaining a $650 million credit facility via Wachovia Securities and Morgan Stanley. Goldman Sachs & Co. is the documentation agent.

The announcement is a reduction from the previously anticipated size for the notes and preferreds - the convertibles and bonds were earlier estimated together at $350 million. But the credit facility is sized larger than the $600 million originally expected.

The acquisition is expected to close around the end of April.

Chiquita is a Cincinnati-based international marketer, producer and distributor of high-quality bananas and other fresh produce.

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