Chefs’ Warehouse to price $130 million five-year convertibles to yield 1.375%-1.875%, up 32.5%-37.5%

By Rebecca Melvin

New York, Nov. 18 – Chefs’ Warehouse Inc. plans to sell $130 million of five-year convertibles, which were being talked to yield 1.375% to 1.875% with an initial conversion premium of 32.5% to 37.5%, according to market sources late Monday.

The Rule 144A notes have an over-allotment option of $20 million and were being sold via joint bookrunners Jefferies LLC and BMO Capital Markets Corp. The deal was expected to price after the market close on Tuesday.

The notes are non-callable for life with no puts. The notes will be physically settled.

The proceeds will be used to pay down the remaining $43.2 million principal amount outstanding of loans under its asset-based loan facility, for working capital and for general corporate purposes, which may include acquisitions.

The distributor of specialty food products is based in Ridgefield, Conn.

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