Research Update: Chobani Global Holdings LLC On CreditWatch Positive Pending Possible La Colombe Acquisition

New York based Greek yogurt producer Chobani Global Holdings LLC is proposing to issue $550 million of senior secured debt, the proceeds of which (together with cash and equity) may be used to acquire La Colombe (LC), a U.S.-based coffee roaster resulting in S&P Global Ratings-adjusted pro forma debt to EBITDA of about 7.5x (including a 2.5x adjustment to leverage for preferred equity held by an institutional investor). If the acquisition does not close, the company may opt to use proceeds to repurchase its 2025 unsecured notes at par. Chobani's operating performance continues to exceed expectations including year-to-date free operating cash flow (FOCF) of more than $200 million and cash interest coverage of more than 3.5x. We placed all of

...- New York based Greek yogurt producer Chobani Global Holdings LLC is proposing to issue $550 million of senior secured debt, the proceeds of which (together with cash and equity) may be used to acquire La Colombe (LC), a U.S.-based coffee roaster resulting in S&P Global Ratings-adjusted pro forma debt to EBITDA of about 7.5x (including a 2.5x adjustment to leverage for preferred equity held by an institutional investor). - If the acquisition does not close, the company may opt to use proceeds to repurchase its 2025 unsecured notes at par. - Chobani's operating performance continues to exceed expectations including year-to-date free operating cash flow (FOCF) of more than $200 million and cash interest coverage of more than 3.5x. - We placed all of Chobani's ratings, including its 'B-' issuer credit rating on Credit Watch with positive implications, indicating the possibility of an upgrade either if the acquisition closes on terms consistent with our pro forma leverage estimates or if the...

Research Update