Bolthouse Farms' bank debt dipped after it recalled a number of its 100% carrot juice products following incidents of botulism connected with the consumption of the juice. Its second-lien bank debt fell 3/4 of a point to 100 7/8, while its term loan "B" dipped 1/8 of a point to 100 1/2. Bank of America and Goldman Sachs lead the loans, which are generally illiquid, according a dealer. Despite the recall, trading volume had been light, he added.
The Bakersfield, Calif.-based farm voluntarily recalled the juice after four people became ill with botulism, a potentially fatal disease, from drinking improperly refrigerated bottles of carrot juice. A Bolthouse Farms' spokesman, citing a Food and Drug Administration release, said consumers fell ill after drinking juice that was not properly refrigerated once it was in the home. The company recalled all carrot juices with use-by dates up to and including Nov. 11. He said it is too early to tell what financial impact the recall could have. He added carrot juice is just one of an array of products it offers. In a release, the company said the voluntary recall serves as an effort to show its commitment to providing the safest product possible, regardless of consumer mishandling.