Chefs' Warehouse stock falls 9% after hours on $250M convertible note offering
Chefs' Warehouse (NASDAQ:CHEF) stock fell 8.8% after hours on Wednesday as the firm announced a $250M offering of its convertible senior notes due 2028 in a private placement to qualified institutional buyers.
The company will grant initial buyers of the notes an option to buy, for settlement within 13 days from, and including, the date of issue, up to an additional $37.5M of convertible notes.
The notes are expected to pay interest semiannually.
The convertible notes will mature on December 15, 2028, unless earlier converted, redeemed or repurchased.
Net proceeds will be used to pay the cash portion of the consideration in concurrent exchange deals and for general corporate purposes.
Concurrently with the offering, Chefs' Warehouse (CHEF) expects to enter into exchange deals with certain holders of its 1.875% convertible senior notes due 2024 to exchange a portion of outstanding existing convertible notes for a combination of cash and shares.