Sunny Delight fluid structure includes $185 million in U.S. term loans, $50 million revolver

By Sara Rosenberg

New York, April 29 - A fluid structure and fluid price talk emerged on Sunny Delight Beverages Co.'s proposed credit facility as the deal is taking shape before its Wednesday launch.

Currently, the deal is anticipated to consist of a $50 million revolver, a $150 million term loan talked at Libor plus 250 basis points, a $35 million second lien term loan talked at Libor plus 550 basis points and a €100 million tranche, according to a market source.

However, these details are still fluid and can change prior to the upcoming bank meeting, the source added.

Previously, all that was known on the structure was that the size was estimated at $375 million and the deal would be split into first and second lien term loan facilities, of which about $100 million equivalent will be euro denominated and sold to European institutions.

UBS is the lead bank on the deal.

Proceeds will be used to support J.W. Childs Associates LP's acquisition of the Sunny Delight and Punica juice-based drink businesses from The Procter & Gamble Co. Sunny Delight and Punica currently operate under the company name Sundor Brands Inc. However, once the acquisition is completed the businesses will operate under the name of the Sunny Delight Beverages Co., a freestanding business that will be based in Cincinnati, according to a Procter & Gamble news release.

Pending regulatory approval, closing of the transaction is expected in the July-September quarter of 2004.

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