Chiquita Breaks Over Par After Pricing Tweaks

Lead banks Wachovia Securities, Morgan Stanley and Goldman Sachs tightened pricing on the $650 million credit facility for Chiquita Brands International to fund its $855 million acquisition of Fresh Express.

  • 01 Jul 2005
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Lead banks Wachovia Securities, Morgan Stanley and Goldman Sachs tightened pricing on the $650 million credit facility for Chiquita Brands International to fund its $855 million acquisition of Fresh Express. The deal was oversubscribed in syndication and the institutional tranches broke for trading above 101.

The facility consists of a $150 million revolver, a $125 million term loan "B" and a $375 million term loan "C." Pricing on the revolver is LIBOR plus 2 1/4% and the spread on the term loan "B" and "C" is LIBOR plus 2 1/2%. These terms are lower than initial price talk, which was LIBOR plus 2 1/2% on the revolver and LIBOR plus 2 3/4% on the "B" and "C" loans. The "B" was quoted at 101 3/8-101 5/8 and the "C" was quoted at 101 1/4 - 101 1/2.

There is a pricing grid for the "B" and the "C" loans. If leverage is equal to or below three times, pricing is LIBOR plus 2 1/4%. Below or equal to 2.5 times, it will be LIBOR plus 2%. These prices cannot be accessed during the first full year.

In connection with the acquisition, the company is also planning to offer $225 million of 8 7/8% senior notes due 2015. "We targeted a financial structure that would allow us sufficient liquidity and financial flexibility to execute the transaction and support our sustainable growth strategy going forward," a Chiquita spokesman said on the decision to do a notes offering.

Moody's Investors Service assigned a B1 rating to the credit facility and a B3 rating to the senior unsecured notes.

As of March 31, Chiquita had $250 million outstanding of 7 1/2% Senior Notes, $75 million in shipping debt and $16.7 million in other debt.

  • 01 Jul 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 13.16
2 Citi 2,562 6 10.16
3 Goldman Sachs 2,150 3 8.52
4 Credit Suisse 1,822 6 7.22
5 Societe Generale 1,814 4 7.19

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%