Chiquita Brands International, Inc: Chiquita Secures Amendment To Credit Agreement
(Thomson Reuters ONE) -
CHIQUITA SECURES AMENDMENT TO CREDIT AGREEMENT
Company Provides Update on Hedging Strategy
CINCINNATI, June 26, 2012 - Chiquita Brands International, Inc. (NYSE: CQB)
today announced that, as anticipated, Chiquita Brands L.L.C., its wholly owned
subsidiary, has successfully amended its existing Credit Agreement dated as of
June 26, 2011. The amendment provides the company with more operating
flexibility to execute its strategy and to manage the volatility inherent in its
businesses.
This amendment modifies certain financial covenants, including the Borrower
Leverage Ratio, and amends the interest rate applicable to borrowings
outstanding under the Credit Agreement to a market-based rate through September
30, 2013. During this period, Chiquita will pay an interest rate that will
result in increased interest expense of approximately $3 million and $5 million
in 2012 and 2013, respectively.
As part of the Company's continued efforts to mitigate its risk exposure and in
order to provide a level of protection from the risk of a devaluing euro,
Chiquita also announced that it has entered into option collar hedge
transactions (involving average rate euro put and call options) to hedge
approximately half of its euro-based revenue exposure through the balance of
2012 and for all of 2013.
A copy of the new credit agreement amendment is available as an SEC Form 8-K
filing on the company's website at http://investors.chiquita.com.
Contacts:
Steve Himes, 980-636-5636, shimes(at)chiquita.com, (Investors & Analysts)
Andrew Ciafardini, 513-748-7507, aciafardini(at)chiquita.com, (Media)
ABOUT CHIQUITA BRANDS INTERNATIONAL, INC.
Chiquita Brands International, Inc. (NYSE: CQB) is committed to Improving World
Nutrition, as a leading international marketer and distributor of nutritious,
high-quality fresh and value-added food products - from energy-rich bananas,
blends of convenient green salads, other fruits to healthy snacking products.
The company markets its healthy, fresh products under the Chiquita® and Fresh
Express® premium brands and other related trademarks. With annual revenues of
more than $3 billion, Chiquita employs more than 21,000 people and has
operations in nearly 70 countries worldwide. For more information, please visit
our corporate web site at www.chiquita.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain statements that are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Chiquita, including: the
customary risks experienced by global food companies, such as prices for fuel
and other commodity inputs, currency exchange rate fluctuations, industry and
competitive conditions (all of which may be more unpredictable in light of
continuing uncertainty in the global economic environment), government
regulations, food safety issues and product recalls affecting the company or the
industry, labor relations, taxes, political instability and terrorism;
challenges in implementing the relocation of the company's corporate
headquarters, and other North American corporate functions, to Charlotte, North
Carolina; unusual weather events, conditions or crop risks; the company's
continued ability to access the capital and credit markets on commercially
reasonable terms and comply with the terms of its agreements; and the outcome of
pending litigation and governmental investigations involving the company, as
well as the legal fees and other costs incurred in connection with these items.
Any forward-looking statements made in this press release speak as of the date
made and are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed or implied in
the forward-looking statements, and the company undertakes no obligation to
update any such statements. Additional information on factors that could
influence Chiquita's financial results is included in its SEC filings, including
its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
###
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originality of the information contained therein.
Source: Chiquita Brands International, Inc via Thomson Reuters ONE
[HUG#1622264]
Unternehmensinformation / Kurzprofil:
Datum: 26.06.2012 - 23:38 Uhr
Sprache: Deutsch
News-ID 160294
Anzahl Zeichen: 5365
contact information:
Town:
Cincinnati
Kategorie:
Business News
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