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 (http://investors.chiquita.com/).
Contacts:
Steve Himes, 980-636-5636, shimes@chiquita.com (mailto:shimes@chiquita.com), (Investors & Analysts)
Andrew Ciafardini, 513-748-7507, aciafardini@chiquita.com (mailto:aciafardini@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 (http://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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Source: Chiquita Brands International, Inc via Thomson Reuters ONE
