Chobani to sell $325 million eight-year secured notes on Monday; initial guidance in 5% area

By Paul A. Harris

Portland, Ore., Oct. 19 – Chobani, LLC and Chobani Finance Corp., Inc. plan to price a $325 million offering of eight-year senior secured notes (expected rating B1/B-) in a Monday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial talk is in the 5% area, a trader said.

BofA Securities Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC and KeyBanc Capital Markets Inc. are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The New Berlin, N.Y.-based food-focused wellness company plans to use the proceeds, together with a new term loan, to repay its existing term loan and other secured or unsecured debt, with any remaining proceeds to be used for general corporate purposes.

Chobani markets, sells and distributes Greek yogurt and other products.

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