EX-9.1 2 dex91.htm COVENANT COMPLIANCE UNDER CHIQUITA BRANDS L.L.C. BANK CREDIT FACILITY Covenant Compliance under Chiquita Brands L.L.C. Bank Credit Facility

Exhibit 9.1

Chiquita Brands International, Inc. (“HoldCo”)

Covenant Compliance Under Chiquita Brands L.L.C. (“OpCo”) Bank Credit Facility

(dollars in millions except ratios)

(unaudited)

 

Leverage Covenant

    3/31/08     6/30/08     9/30/08     12/31/08        

OpCo Funded debt 1

    231     228     217     214    

OpCo Last Twelve Months (“LTM”) EBITDA

    178     223     221     193    

OpCo Leverage ratio

    1.30 x   1.02 x   0.98 x   1.11 x  

Permitted—must be less than

    3.50 x   3.50 x   3.50 x   3.50 x  

Fixed Charge Coverage Covenant

                               

OpCo LTM EBITDA

    178     223     221     193    

OpCo LTM Rent expense 2

    136     136     139     134    
                          

OpCo LTM EBITDA + Rent expense

    314     359     360     327    

OpCo LTM Fixed charges 3

    214     210     208     196    

OpCo Fixed charge coverage ratio

    1.47 x   1.71 x   1.73 x   1.66 x  

Permitted—must be greater than

    1.15 x   1.15 x   1.15 x   1.15 x  

Calculation of EBITDA under Bank Credit Facility

    Qtr1     Qtr2     Qtr3     Qtr4     Year  

OpCo Quarterly EBITDA (Non-GAAP)

    76     101     21     (384 )   (186 )

Non-cash stock compensation

    2     2     5     2     11  

Non-cash writedowns 4

          382     382  

Gains on debt extinguishment 5

        (10 )   (4 )   (14 )
                              

OpCo Quarterly EBITDA (per Bank Credit Facility)

    78     103     16     (4 )   193  
                              

 

1

Includes term loan and borrowings under OpCo’s revolving credit facility (including approximately $21 million in letters of credit outstanding supported by this facility); excludes HoldCo’s senior note and convertible note issues.

2

Rent expense excludes the estimated portion of ship charter costs that represent normal vessel operating expenses.

3

Fixed charges include total company interest, rent and other items, but exclude certain payments and non-cash charges, such as amortization of loan fees, as specified in the Bank Credit Facility.

4

Non-cash writedowns in Q4 2008 included a $375 million writedown for Fresh Express goodwill, and writedowns for a UK ripening facility and certain assets impacted by flooding in Costa Rica and Panama.

5

In 2008, the company used $75 million of cash proceeds from the sale of Atlanta AG to repurchase senior notes on the open market at a discount, resulting in $14 million of net gains.