Research Update: Chobani Global Holdings LLC Ratings Affirmed And Removed From CreditWatch Positive On Delayed IPO; Outlook Stable

We believe U.S. Greek yogurt producer Chobani Global Holdings LLC's IPO timing will likely be delayed well beyond the first half of 2022 given adverse market conditions. We expect the company will continue to generate good organic sales growth that will partially offset input cost inflation, but nonetheless remain very highly leveraged, including debt to EBITDA of over 10x (8x excluding preferred equity capital), and FFO cash interest coverage near 2x. We affirmed our 'B-' issuer credit rating and 'B-' and 'CCC' senior secured and unsecured issue-level ratings, and removed them all from CreditWatch, where we placed them with positive implications on July 13, 2021. The '3' and '6' recovery ratings on the senior secured and unsecured debt, respectively, remain

...- We believe U.S. Greek yogurt producer Chobani Global Holdings LLC's IPO timing will likely be delayed well beyond the first half of 2022 given adverse market conditions. - We expect the company will continue to generate good organic sales growth that will partially offset input cost inflation, but nonetheless remain very highly leveraged, including debt to EBITDA of over 10x (8x excluding preferred equity capital), and FFO cash interest coverage near 2x. - We affirmed our 'B-' issuer credit rating and 'B-' and '###' senior secured and unsecured issue-level ratings, and removed them all from CreditWatch, where we placed them with positive implications on July 13, 2021. The '3' and '6' recovery ratings on the senior secured and unsecured debt, respectively, remain unchanged. - The stable outlook reflects our expectation for FFO cash interest coverage to be near 2x and debt to EBITDA to be above 10x (above 8x excluding the preferred equity debt adjustment) over the next 12 months....

Research Update