Chobani driving by with $500 million notes due July 2029; initial talk low-to-mid 8% area

By Paul A. Harris

Portland, Ore., Jan. 11 – Chobani Finance Corp., Inc. plans to price a $500 million offering of senior notes due July 2029 (Caa1/CCC) in a Thursday drive-by, according to market sources.

The Rule 144A and Regulation S deal, which will be presented to investors on a conference call scheduled to get underway at noon ET on Thursday, is in the market with initial guidance in the low-to-mid 8% area, a trader said.

The notes, which have a tenor of approximately 5.5 years, become subject to an initial call in two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The notes will be guaranteed on a senior unsecured basis by parent Chobani Global Holdings, LLC.

Joint active bookrunner BofA Securities Inc. will bill and deliver. TD Securities (USA ) LLC is also a joint active bookrunner.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are joint bookrunners.

The New Berlin, N.Y.-based food maker plans to use the proceeds to redeem all of its 7½% senior notes due 2025 and for general corporate purposes.

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