Tropicana discloses price talk on $2.42 billion of term loans

By Sara Rosenberg

New York, Jan. 12 – Tropicana (Naked Juice LLC) came out with price talk on its $1.9 billion seven-year first-lien term loan, of which $150 million is a delayed-draw tranche, and $520 million eight-year second-lien term loan in connection with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan is SOFR+10 basis points CSA plus 375 bps with a 0.5% floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is SOFR+10 bps CSA plus 650 bps with a 0.5% floor and a discount of 99, the source said.

Ticking fees on the first-lien delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

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.

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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