(Bloomberg) — Tropicana Manufacturers Group, going through a liquidity crunch as juice gross sales lag, is contemplating competing gives for a money injection from new lenders and holders of its current debt, in response to individuals with data of the state of affairs.
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A mortgage supply from TPG Angelo Gordon is on the desk, mentioned the individuals, who requested to not be named citing non-public talks.
Some current lenders to PAI Companions-controlled Tropicana are additionally in talks with the juice maker a couple of proposed debt repair that entails new financing and a restructuring of current liabilities, the individuals added. These collectors are working underneath a pact to barter with the corporate as a coordinated unit, they mentioned.
Such cooperation agreements have change into widespread in distressed debt markets as collectors search to claw again negotiating energy they misplaced lately as debt demand grew and their protections eroded. One consequence has been elevated incidence of debtors underneath stress utilizing maneuvers that transfer property away from current collectors to lift new financing.
Representatives for TPG Angelo Gordon, a credit score and actual property investing platform owned by various asset supervisor TPG, declined to touch upon the potential financing talks. Tropicana, which didn’t reply, is being suggested in its debt-fix efforts by PJT Companions Inc. It declined to remark.
Gibson Dunn, which is advising the group of collectors, didn’t reply to a request for remark.
Tropicana’s debt features a $1.8 billion first-lien mortgage due in 2029 and a $450 million second-lien mortgage due 2030. They stem from PAI buying majority management of Tropicana, Bare Juice and different beverage manufacturers in early 2022 from PepsiCo Inc.
Declining income is threatening Tropicana’s skill to fund itself and repair these borrowings, the individuals mentioned.
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