Sunny Delight to relaunch restructured credit facility this week

By Sara Rosenberg

New York, Aug. 2 - Sunny Delight Beverages Co. is expected to launch a restructured credit facility this week, with some saying that a bank meeting will take place Wednesday, according to a market source.

UBS is the lead bank on the deal.

Information about the structure of the credit facility was not immediately available prior to press time, but the deal is anticipated to consist of a revolving credit facility (B1/B+), a term loan (B1/B+) and a second-lien term loan (B2/B-), the source said.

"I hear that senior leverage is down, the second-lien piece is already done and cash flow is not significantly below where it was," the source added.

Proceeds will be used to help fund J.W. Childs Associates LP's acquisition of the Sunny Delight and Punica juice-based drink businesses from The Procter & Gamble Co.

This is the second time that the company has come to market with a credit facility for this acquisition. Cincinnati-based Sunny Delight put its then proposed $250 million credit facility on hold in mid-July since the company had "experienced softness in certain markets," a source previously told Prospect News.

The previous attempt consisted of a $40 million revolver with an interest rate of Libor plus 250 basis points (Ba3/BB-), a $175 million term loan talked at Libor plus 300 basis points (Ba3/BB-), a $35 million second-lien term loan talked at Libor plus 550 basis points (B1/B) with call protection of 102 in year one and 101 in year two and a $75 million U.S. dollar equivalent euro tranche talked at Libor plus 325 basis points (Ba3/BB-).

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