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Tropicana reveals non pro rata new money and exchange deal

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News and Analysis

Tropicana reveals non pro rata new money and exchange deal

Rachel Butt's avatar
Max Frumes's avatar
  1. Rachel Butt
  2. +Max Frumes
•3 min read

Tropicana has privately disclosed a LME deal to broader lenders and will hold a call at 3pm ET on 10 April to discuss the terms, according to 9fin sources. The deadline for participation is 15 April.

The juice company, which counts PAI Partners as its majority backer and Pepsi as its minority shareholder, has so far garnered support from 73% to 78% of existing first lien loan holders and 100% of revolver lenders, sources said.

The steerco and the majority ad hoc group lenders have agreed to exchange into a package that represents a higher consideration than the out-group, according to sources. The in-group is exchanging its first lien debt for 10 cents first-out debt and 81 cents into second-out, according to sources. Meanwhile, the remaining non ad hoc group first lien term loan lenders are being offered to exchange their holdings at 70 cents, with half into a new $1.425bn second-out facility and half into a new $750m third-out piece, multiple sources said. Non ad hoc second lien lenders are now being offered to swap at 70 cents, 20% of which (14 cents) would exchange into second-out, and 80% of which (56 cents) would exchange into third-out, these sources said. The size of the third-out tranche may change depending on participation. There may also have been a deal for some non ad hoc group lenders who agreed to NDAs prior to the announcement of this deal, according to a source.

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