Chefs' Warehouse draws $675M term loan to refinance debt, settle convertible notes
What's the deal? The Chefs' Warehouse, a specialty food distributor, has drawn down a $675 million senior secured term loan, with Jefferies Finance LLC as administrative and collateral agent. The company used the proceeds to refinance its previous term loan, redeem convertible notes, fund capital expenditures, and support general corporate purposes.
Why now? The refinancing followed the settlement of the company's 2.375% Convertible Senior Notes due 2028. Holders of roughly $287.2 million in principal opted to convert during the window ending October 14, 2026, triggering about $437.1 million in cash payments and the issuance of 2,671,056 common shares.
The new loan matures October 15, 2033, and carries interest at SOFR plus 2.00% or an alternate base rate plus 1.00%, selectable by the borrower. The prior term loan, dated June 22, 2016, was repaid for about $244.7 million and terminated.
What's the endgame? The move consolidates borrowings into a single facility while extending maturities. Chefs' Warehouse distributes more than 90,000 products to over 55,000 customer locations across the US, the Middle East, and Canada.
This is a balance-sheet reshaping rather than new growth capital. It comes after strong second-quarter 2026 results, with sales up 12.9%, adjusted EBITDA of $88.1 million, and net leverage at 1.6x.
The signal: The financing lands mid-sized among recent capital raises, sitting near the median by amount. For a profitable distributor, the refinancing simplifies the capital structure and cuts refinancing uncertainty — though higher leverage could amplify any future margin pressure.
Read more: kalkinemedia.com, Business Insider
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