Article/Intelligence
Tropicana in Talks With KKR for New $100M AR Facility
Tropicana Products is in discussions with KKR about securing a new account receivables facility from KKR to replenish liquidity, according to sources.
The new financing could be about $100 million in size, the sources said.
The cash-strapped juice company has also been in talks with existing and prospective lenders to raise additional capital to fund operations, Octus, formerly Reorg, reported previously. The company, represented by Latham and PJT Partners, is evaluating a liability management exercise with existing lenders. An ad hoc group of first lien lenders, represented by Gibson Dunn and Evercore, went restricted, as reported in February. The first lien administrative agent UBS is advised by Orrick, as reported.
Lower demand for orange juice because of shifting consumer taste and elevated orange prices because of citrus greening disease have affected the company’s financial performance and pressured its liquidity, according to sources.
An estimate of the company’s capital structure is shown below:
Tropicana’s original $1.82 billion SOFR+325 bps first lien term loan due 2029 was indicated today at 52/55, down from 62/60, according to Solve. Its $450 million SOFR+600 bps second lien paper due 2030 was indicated today at 22/26, Solve shows. CLO lenders to the company are HERE.
Requests for comment from Tropicana, sponsor PAI Partners and Latham were not returned as of press time. PJT and KKR declined to comment.
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