Moody’s rates Chefs’ amended loan B2

Moody’s Investors Service said it assigned a B2 rating to Chefs' Warehouse, Inc.'s proposed amended first-lien term loan due 2025.

The company's existing ratings are unchanged, including its B2 corporate family rating, B2-PD probability of default rating, B2 term loan rating and SGL-3 speculative grade liquidity rating.

The outlook remains negative.

The amendment will extend the maturity of the $238 million term loan to 2025 from 2022, increase pricing by 200 basis points and add a minimum liquidity covenant. In conjunction with the transaction, the company will pay down 15% of the outstanding amount, payable to consenting lenders only.

Moody's said it views the transaction as credit positive because it extends the company's debt maturity profile and modestly lowers debt levels.

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