CHEF - Why Chefs' Warehouse Stock Was Down on Thursday
Chefs' Warehouse (NASDAQ: CHEF) stock fell early Thursday, with shares declining 10% by 11 a.m. ET, compared to a 0.8% increase in the S&P 500 . That slump wasn't enough to change the positive wider return picture, though, as Chefs' Warehouse is in slightly positive territory for the year compared to a 17% drop in the wider market.
Thursday's decline was sparked by news that the company is taking on a new round of debt.
Chefs' Warehouse announced late Wednesday that it is seeking $250 million of new loans. The debt will be in the form of convertible notes , meaning its owners will have the option of exchanging them for the company's stock. Management says it plans to use the debt partly to pay off older loans, which have a 2024 due date. The new round of notes will be due in 2028.
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Why Chefs' Warehouse Stock Was Down on Thursday