Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Lifeway Foods, Inc. (LWAY) -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (291)	4/23/2014 5:18:41 PM
From: Glenn Petersen	Respond to of 338

Chobani Raises $750 Million in Debt From TPG By WILLIAM ALDEN Dealbook New York Times April 23, 2014, 4:53 pm The yogurt maker Chobani has struck a deal with private equity. Chobani, a fast-growing company in upstate New York, said on Wednesday that it had secured a $750 million loan from TPG, a big private equity firm. The fresh capital, coming after a competitive process in recent weeks, is intended to help Chobani expand overseas. Though the money is in the form of a loan, TPG is also receiving warrants that may allow it to obtain an equity stake in Chobani of as much as 35 percent, people with direct knowledge of the deal said. The warrants convert to equity if Chobani achieves certain goals — the most important of which being an initial public offering or other sale, the people said. Chobani is hoping to go public as early as 2015. “Chobani has experienced tremendous growth and leads one of the most exciting aisles in the supermarket,” the chairman and chief executive, Hamdi Ulukaya, said in a statement. “This investment gives us additional resources to build on our momentum, fund our exciting new innovations and reach new people.” The new capital represents a new phase in the growth of Chobani, which Mr. Ulukaya founded in 2005. Last year, the company recorded revenue of more than $1 billion. It now plans to introduce new products, including a dessert and a yogurt mixed with steel-cut oats, which go beyond its flagship Greek yogurt offerings. The financing round was not based on a particular valuation, but the company believes it is worth around $5 billion, according to the people with knowledge of the deal. Mr. Ulukaya owns 100 percent of the equity. A major reason the company pushed for a loan, rather than a straight equity investment, was to prevent dilution, the people said. TPG is making the investment through its private equity arm, known as TPG Capital, and its credit platform, TPG Opportunities Partners. A representative of TPG is expected to join Chobani’s board. Six potential investors had shown interest in doing a deal with Chobani. But TPG emerged as the leader in late March. “Hamdi and the team at Chobani have in seven years turned the vision of bringing a quality, nutritious Greek yogurt to America into a highly successful business,” Jim Coulter, a co-founder of TPG, said in a statement. “We look forward to Chobani’s future growth and expansion of the brand.” Chobani was advised by Bank of America Merrill Lynch and the law firm Kirkland & Ellis. TPG was advised by the law firm Ropes & Gray.\ dealbook.nytimes.com