Korea Investment & Securities to back PAI Partners in acquiring Tropicana

The securities company Korea Investment and Securities said Monday it will participate as a joint lead arranger to back PAI Partners’ acquisition of the orange juice brand Tropicana.

The Paris-based private-equity firm PAI Partners agreed to buy a majority interest in a portfolio of juice brands, including Tropicana, from PepsiCo last August. Investment banks like Credit Suisse and Bank of America are involved in helping PAI Partners obtain $4.4 billion (5.27 trillion won) in loans needed to finance the transaction.

Korea Investment and Securities is the only financial institution in Korea participating in the Tropicana acquisition. It will be responsible for arranging senior and mezzanine loans, the company said.

The company credits close cooperation with its overseas subsidiaries, such as ones in Hong Kong and New York, as key to forging strong ties with PAI Partners and to winning its role as lead arranger. It has increasingly looked to expand its operations into the global IB market by leveraging its overseas subsidiaries‘ global connections.

"By strengthening ties with our foreign subsidiaries and ramping up our network within the global financial market, we plan to build a strong track record in the field of corporate finance.” said an official from the company.

By Ahn Ju-hee (dianahn@heraldcorp.com)