By Wendy Van Sickle
Columbus, Ohio, Nov. 19 – Chefs’ Warehouse Inc. priced $130 million of 1.875% five-year convertibles after the market close on Tuesday with an initial conversion premium of 35%, according to a news release.
The notes were talked to yield 1.375% to 1.875% with an initial conversion premium of 32.5% to 37.5%, market sources had said late Monday.
The Rule 144A notes have an over-allotment option of $20 million and were sold via joint bookrunners Jefferies LLC and BMO Capital Markets Corp.
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 $43.3 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.
| Issuer: | Chefs’ Warehouse Inc.
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| Issue: | Convertible senior notes
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| Amount: | $130 million
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| Greenshoe: | $20 million
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| Maturity: | Dec. 1, 2024
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| Bookrunners: | Jefferies LLC and BMO Capital Markets Corp.
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| Coupon: | 1.875%
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| Conversion premium: | 35%
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| Conversion price: | $44.20
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| Conversion ratio: | 22.6249 shares
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| Calls: | None
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| Puts: | None
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| Pricing date: | Nov. 19
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| Settlement date: | Nov. 22
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| Distribution: | Rule 144A
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| Price talk: | 1.375% to 1.875%, up 32.5% to 37.5%
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| Stock symbol: | NYSE: CHEF
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| Stock reference price: | $32.74 closing price on Nov. 19 Market capitalization: | $993.1 million
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