Moody’s gives Caa2 to Chobani notes

Moody's Investors Service said it assigned a Caa2 rating to proposed $530 million eight-year senior unsecured notes being offered by Chobani, LLC.

The agency affirmed all other ratings, including the B3 corporate family rating and B1 senior secured first-lien debt ratings.

The outlook is positive.

The proposed offering is the second part of a two-part transaction launched last week to refinance the company's existing 13% (5% cash, 8% PIK) $643 million second-lien term loan. Proceeds, together with proceeds from the $175 million incremental first-lien term loan offered last week, will be used to retire the second-lien term loan (including a $26 million call premium) and to pay transaction fees.

Upon consummation, the refinancing transaction will cause financial leverage to increase slightly. Including Moody's adjustments, Chobani's debt/EBITDA will be about 7.8 times at closing, compared to 7.4 times at year-end 2016.

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