Loan & DebtAug 12, 2026, 04:05 PM
Chefs' Warehouse Calls $287.5M Convertible Notes for Redemption
AI Summary
Chefs' Warehouse, Inc. announced the redemption of all $287.5 million aggregate principal amount of its 2.375% Convertible Senior Notes due 2028, effective October 15, 2026. This action was triggered by the company's common stock price exceeding 130% of the conversion price. Note holders have the option to convert their notes until October 14, 2026, with an increased conversion rate due to a 'Make-Whole Fundamental Change'. Concurrently, the company is progressing with a refinancing plan, having upsized a new term loan facility to $675 million, which will be used to refinance existing debt, redeem the notes, and for general corporate purposes.
Key Highlights
- Chefs' Warehouse called all $287.5 million aggregate principal amount of its 2.375% Convertible Senior Notes due 2028 for redemption.
- The redemption date for the notes is October 15, 2026, at a price of approximately $1,007.92 per $1,000 principal amount.
- Note holders can convert their notes until October 14, 2026, with an increased conversion rate.
- The conversion rate has increased by 0.3615 additional shares to 22.9527 shares of common stock per $1,000 principal amount.
- The company will settle conversions with cash up to $1,522 per $1,000 principal amount and shares for any remainder.
- A new term loan facility has been upsized to $675 million from $625 million.
- Proceeds from the new term loan facility are intended to refinance existing debt, redeem the notes, and for general corporate purposes.
Price Impact
More from CHEF