Research Update: Chobani Global Holdings LLC Upgraded To 'B' From 'B-', Outlook Stable; Senior Unsecured Notes Rated 'CCC+'

New York-based Greek yogurt producer Chobani Global Holdings LLC is proposing to issue $500 million of senior unsecured notes due in 2029, the proceeds of which, together with cash on its balance sheet, it will use to redeem its $530 million senior unsecured notes due in 2025. We continue to expect the company to generate free operating cash flow (FOCF) of over $100 million, maintain funds from operations (FFO) interest in the mid-to-high 2x area, and successfully integrate its La Colombe (LC) acquisition, which it closed and funded in December 2023. We raised all of our ratings on Chobani, including our issuer credit rating to 'B' from 'B-', and removed them from CreditWatch, where we placed them with positive implications

...- New York-based Greek yogurt producer Chobani Global Holdings LLC is proposing to issue $500 million of senior unsecured notes due in 2029, the proceeds of which, together with cash on its balance sheet, it will use to redeem its $530 million senior unsecured notes due in 2025. - We continue to expect the company to generate free operating cash flow (FOCF) of over $100 million, maintain funds from operations (FFO) interest in the mid-to-high 2x area, and successfully integrate its La Colombe (LC) acquisition, which it closed and funded in December 2023. - We raised all of our ratings on Chobani, including our issuer credit rating to 'B' from 'B-', and removed them from CreditWatch, where we placed them with positive implications on Dec. 6, 2023. - At the same time, we assigned our '###+' issue-level rating and '6' recovery rating to the company's proposed senior unsecured notes. The '6' recovery rating indicates our expectation for negligible (0%-10%, rounded estimate: 0%) recovery in...

Research Update