Chefs’ Warehouse (CHEF) Announces $ 50 Million Offer of Convertible Senior Notes Due 2024

February 24, 2021 4:58 PM EST

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The Chefs’ Warehouse, Inc. (NASDAQ: CHIEF) (the “Company”) today announced its intention to offer, subject to market conditions and other factors, an aggregate principal amount of $ 50 million of its Convertible Senior Notes due 2024 (the “Convertible Notes”) in connection with a private placement to qualified institutional buyers. in accordance with Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). The issue of convertible notes is a reopening and will be part of the same series as the aggregate principal amount of $ 150 million of the 1.875% convertible senior notes due 2024 (the “Existing Notes”) issued by the Company on 22 November 2019. While the Convertible Notes will initially trade under a CUSIP Rule 144A number, once de-captioned, the Convertible Notes will have the same CUSIP number and will be fully fungible with the existing Notes.

The Convertible Notes are expected to pay interest semi-annually and will be convertible at the option of the holders of the Convertible Notes into common shares of the Company. The Convertible Bonds will mature on December 1, 2024, unless they are previously converted or redeemed in accordance with their terms. The final pricing terms for the Convertible Notes will be determined by negotiations between the Company and the original purchaser of the Convertible Notes.

The Company intends to use approximately $ 31.2 million of the net proceeds of the convertible note offering to repay the amounts outstanding under its term loan facility and the remainder of the net proceeds for working capital and general business needs, which may include future acquisitions or the repayment of a portion of outstanding principal under its asset-backed loan facility.

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