U.S.-based The Chefs' Warehouse Inc. is recapitalizing its existing capital structure with a $280 million senior secured first-lien term loan, $50 million senior secured delayed draw first-lien term loan, and a $75 million asset-based revolver (ABL; unrated). We are assigning a 'B' corporate credit rating to Chefs' Warehouse. In addition, we are assigning a 'B' issue-level rating and '3' recovery rating to the company's senior secured first-lien term loan and delayed draw first-lien term loan. Our positive outlook reflects the likelihood that we could raise the ratings on Chefs' Warehouse if the company demonstrates the ability and willingness to reduce financial leverage to around or below 5x over the next 12 months and maintain it thereafter. It could achieve this
