Business Context and Reporting Period
Company: The Chefs' Warehouse, Inc. (NASDAQ: CHEF)
Filing Type: Form 8-K (Current Report)
Date of Report: March 18, 2024
Event: Entry into a Material Definitive Agreement (Amendment No. 11 to Senior Secured Term Loan Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt restructuring terms.
| Metric | Value/Detail |
|---|---|
| Outstanding Term Loan Principal | $272,250,000.00 |
| Previous Interest Rate (Term SOFR) | 475 basis points + credit spread adjustment |
| New Interest Rate (Term SOFR) | 400 basis points (no credit spread adjustment) |
| Previous Interest Rate (Alternate Base Rate) | 375 basis points |
| New Interest Rate (Alternate Base Rate) | 300 basis points |
| Adjusted Term SOFR Floor | 0.50% (Unchanged) |
| Scheduled Maturity Date | August 23, 2029 (Unchanged) |
Material Changes
The Company repriced its senior secured term loan B facility, resulting in a reduction of the interest rate spread. Specifically, the spread over Term SOFR was reduced by 75 basis points (from 475 bps to 400 bps), and the spread over the Alternate Base Rate was reduced by 75 basis points (from 375 bps to 300 bps). Additionally, the credit spread adjustment applicable to Term SOFR was eliminated.
Outlook, Risks, and Management Commentary
Management Commentary: The filing confirms the Company maintains customary corporate and commercial banking relationships with the lenders and administrative agent (Jefferies Finance LLC).
Risks and Contingencies: The filing does not disclose new risks or contingencies beyond the standard terms of the amended credit agreement. The principal amount and maturity date remain unchanged.
Investor Verification Checklist
- Verify the exact interest savings impact on the $272.25 million outstanding principal based on current SOFR rates.
- Review Exhibit 10.1 (Eleventh Amendment to Credit Agreement) for any covenants or conditions not summarized in the 8-K.
- Confirm the Company's compliance with the 0.50% Adjusted Term SOFR floor.
- Monitor future filings for any additional amendments to the credit agreement maturing in 2029.