Chiquita continuing to consider debt reduction possibilities

By Jennifer Lanning Drey

Portland, Ore., Nov. 19 - Chiquita Brands International Inc. will continue to evaluate potential debt reduction opportunities, including additional bond buybacks, Jeff Zalla, chief financial officer of Chiquita, said during a Wednesday presentation at the Morgan Stanley Global Consumer & Retail Conference in New York.

The company has reduced debt by $327 million since the end of 2006 and remains focused on achieving its target of 40% total debt to capital, Zalla said.

Total debt to capital now stands at a 44% following Chiquita's repurchases of about $91.3 million of its senior notes in the open market in September and October.

"We're always balancing smart capital structure with making sure we have ample liquidity, particularly in this environment," Zalla said.

Responding to a question, the CFO noted, however, that Chiquita would not use its revolving credit facility to repurchase long-term debt.

The CFO also said that with $150 million of cash and $129 million of borrowing capacity, Chiquita is comfortable with its liquidity.

Chiquita's near-term focuses include driving additional profitability in the banana business, improving profitability in its salad business and continuing to prudently invest in new innovations, he said.

Chiquita is a Cincinnati-based fruit and vegetable importer and processor.

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