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.
Source Fool.com
