Chiquita Brands LLC will pay an additional $8 million in interest over two years after amending a credit agreement with a group of bank lenders led by Rabobank Nederland.
The change offers the company, a subsidiary of Chiquita Brands International, more operating flexibility and a chance to manage business volatility, according to a news release.
Chiquita also announced that it will hedge about half of its euro-based revenue exposure for the rest of the year and all of 2013, using option collar hedge transactions. The company aims to increase its protection against the risk of a devaluing euro, according to the release.
The credit agreement amendment involves a $330 million term loan plus a $150 million revolving line — both secured — that mature in 2016, according to a filing with the Securities and Exchange Commission.
The agreement shifts the interest rate to a market-based amount through September 2013. That will cost Chiquita about $3 million more this year and $5 million extra next year.
Chiquita’s SEC filing appears online.