CHICAGO (S&P Global Ratings) Feb. 25, 2021--S&P Global Ratings today said that The Chefs' Warehouse Inc.'s planned issuance of $50 million of convertible notes--which will address upcoming debt maturities--is a modest credit positive. The company intends to use the net proceeds from the offering to repay the tranche of its senior secured first-lien term loan due June 2022 ($31 million outstanding) and for general corporate purposes, including to repay outstanding borrowings under its asset-based revolving credit facility (ABL). In addition to addressing the near-term debt maturity, this transaction prevents the company's ABL from coming current in March 2021 (the ABL has a springing maturity 90 days prior to the term loan maturity, unless repaid earlier, which equates to March 2022).
