Chefs’ Warehouse term loan pricing raised until leverage ratio drops

By Wendy Van Sickle

Columbus, Ohio, Sept. 15 – Chefs’ Warehouse Inc. amended its term loan credit agreement dated June 22 on Wednesday to increase its interest rate by 100 basis points until the company’s consolidated total leverage ratio drops to 4.9 times or lower, according to an 8-K filing with the Securities and Exchange Commission.

Also until its leverage ratio meets that threshold, the company will be subject to further restrictions on its ability to pay dividends or voluntarily repay or refinance subordinated- and junior-lien debt prior to their stated maturity and will have to provide its lenders with monthly financial reporting.

Additionally, pursuant to the amendment, Chefs’ Warehouse voluntarily prepaid $25 million of outstanding term loans under the credit agreement and terminated the $36 million of unused commitments under the six-month delayed-draw term loan facility.

Jefferies Finance LLC is the administrative agent of the term loan agreement.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

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