Tropicana to launch $2.42 billion of term loans on Wednesday

By Sara Rosenberg

New York, Jan. 11 – Tropicana (Naked Juice LLC) is set to hold a lender call at 1 p.m. ET on Wednesday to launch $2.42 billion of term loans, according to a market source.

The debt consists of a $1.9 billion seven-year first-lien term loan, of which $150 million is a delayed-draw tranche, and a $520 million eight-year second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Rabobank, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC and SMBC are the arrangers on the deal, with Credit Suisse the left lead on the first-lien and BofA the left lead on the second-lien.

Commitments are due at 5 p.m. ET on Jan. 25, the source added.

Proceeds will be used to help fund the acquisition of a 61% ownership stake by PAI Partners in juice brands, including Tropicana, Naked and Kevita, from PepsiCo Inc.

The sale will result in combined pre-tax cash proceeds of about $3.3 billion and PepsiCo will retain a 39% non-controlling interest in the newly formed joint venture.

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