Sysco Raises $14.65 Billion and €1 Billion in Debt to Fund Jetro Acquisition
Sysco Corporation (SYY) issued $14.65 billion in senior notes alongside 1.0 billion euros in junior subordinated debt. The offerings span multiple maturity dates ranging from 2029 to 2066 with stated interest rates. Shares of Sysco recently traded at $78.14, down 0.08% for the day.
The company plans to use the raised capital to finance the cash consideration for its acquisition of Jetro Restaurant Depot. The proceeds will also cover transaction fees and related expenses. If the transaction fails to close, the funds can be used to redeem permitted notes.
Investors will monitor the final execution of the Jetro Restaurant Depot acquisition and the long-term impact of the newly issued debt on Sysco's balance sheet across its multi-decade repayment schedule.
Key points
- Sysco Corporation priced $14.65 billion in senior notes and 1.0 billion euros in junior subordinated notes.
- The debt maturities span multiple years from 2029 to 2066.
- Proceeds will finance cash consideration for the Jetro Restaurant Depot acquisition and cover related fees.
- If the acquisition fails to close, funds can be used to redeem permitted notes.
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How we writeDisclaimerQuestions and answers
Why is Sysco Corporation issuing $14.65 billion in debt?
Sysco Corporation is raising funds to finance the cash consideration for its acquisition of Jetro Restaurant Depot and pay related fees and expenses.
What happens to the raised funds if the Jetro acquisition fails?
If the acquisition is not completed, Sysco states that proceeds from the offerings may be used to redeem permitted notes.
What are the maturity dates for Sysco's new notes?
The debt offerings feature multiple maturities spanning from 2029 to 2066.