S&P assigns B- to Chobani loan

S&P said it rated Chobani Global Holdings LLC’s planned $550 million senior secured term loan due 2027 B- with a 3 recovery rating. The agency also placed Chobani’s ratings, including its B- issuer rating, on CreditWatch with positive implications.

The loan’s ratings are the same as S&P’s on Chobani’s outstanding senior secured debt.

Chobani plans to use the loan, cash and equity to buy La Colombe, 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.

“The CreditWatch placement reflects the possibility of an upgrade to B either if the transaction closes as currently proposed or if the company uses proceeds to repurchase its 2025 notes,” S&P said in a press release. Previously, Chobani’s outlook was stable.

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