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The Chefs’ Warehouse, Inc. (NASDAQ:CHEF), a leading distributor of specialty food products with annual revenue of $3.87 billion, announced today that it has successfully amended its senior secured term loan credit agreement. The amendment, referred to as the "Thirteenth Amendment," effectively lowers the interest rate on the company’s existing term loan B facility. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating, supported by a healthy current ratio of 2.05.
Under the terms of the Thirteenth Amendment, the interest rate on the senior secured term loan B facility has been reduced from a margin of 350 basis points over term SOFR (Secured Overnight Financing Rate) or 250 basis points over the alternate base rate, to a margin of 300 basis points over term SOFR or 200 basis points over the alternate base rate. The amendment does not alter the existing floor of the Adjusted Term SOFR at 0.50%, nor does it change the scheduled maturity date of August 23, 2029.
The Chefs’ Warehouse stated that the principal amount of term loans outstanding immediately after the effectiveness of the Thirteenth Amendment stands at $253,500,000.00, part of the company’s total debt position of $911.89 million. This move is expected to provide the company with reduced interest expenses going forward. InvestingPro subscribers can access detailed debt metrics and 12+ additional financial health indicators in the comprehensive Pro Research Report.
The company maintains customary corporate and commercial banking relationships with the lenders, administrative agent, and collateral agent involved in this agreement, as well as their affiliates.
The details of the Thirteenth Amendment were outlined in an 8-K filing with the Securities and Exchange Commission (SEC) on Monday, June 16, 2025. The filing confirms that the Chefs’ Warehouse entered into the agreement on the same day.
Investors and interested parties can refer to the full text of the Thirteenth Amendment, which is filed as Exhibit 10.1 to the Current Report on Form 8-K, for a complete understanding of the terms and conditions.
This amendment signifies The Chefs’ Warehouse’s continuous efforts to optimize its financial structure and reduce borrowing costs. The company’s stock, traded under the ticker symbol CHEF on The NASDAQ Stock Market LLC at $63.20 with a market capitalization of $2.58 billion, may respond to this financial maneuver as market conditions unfold. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with detailed valuation metrics available in the Pro Research Report.
In other recent news, The Chefs’ Warehouse, Inc. reported strong financial results for the first quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $0.25, exceeding the forecasted $0.20, and reported revenue of $950.7 million, beating projections by $23.36 million. BMO Capital Markets maintained an Outperform rating for The Chefs’ Warehouse, citing its strategic focus on top-tier independent restaurants and a robust start to its country club and cruise line businesses. The firm’s analysts noted a nearly 9% top-line growth for the quarter, which was above their projections. Additionally, the company saw significant growth in specialty sales, which rose by 10.7% year-over-year. In governance news, the board of directors decided to retain Richard N. Peretz as a director despite a majority vote against his reelection, following a recommendation from the Nominating and Governance Committee. This decision was influenced by Peretz’s qualifications and contributions, as well as a report from ISS Proxy Advisory Services regarding his attendance record. These developments reflect the company’s ongoing efforts to strengthen its market position and governance structure.
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