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|Chiquita Brands International, Inc: Chiquita Secures Amendment To Credit Agreement|
CHIQUITA SECURES AMENDMENT TO CREDIT AGREEMENT
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.
ABOUT CHIQUITA BRANDS INTERNATIONAL, INC.
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.