Chiquita talks $425 million eight-year notes with 8% area yield

By Paul A. Harris

Portland, Ore., Jan. 29 - Chiquita Brands International, Inc. and Chiquita Brands, LLC talked their $425 million offering of eight-year senior secured notes (B1/B) with a yield in the 8% area, a syndicate source said on Tuesday.

The books close at 4 p.m. ET on Tuesday, and the deal is set to price thereafter.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Goldman Sachs & Co. and Barclays are the joint bookrunners.

Rabobank, RB International and RBC Capital Markets are the co-managers.

The Rule 144A with registration rights notes come with three years of call protection. However, a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a 101% poison put.

Proceeds, together with a new ABL facility, will be used to repurchase all of the company's outstanding 7½% notes and refinance its existing credit facility.

Chiquita is a Cincinnati-based marketer and distributor of bananas, fresh produce and packaged salads.

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