Sysco Corporation Announces Cash Tender Offer to Purchase Outstanding Senior Notes and Debentures
May 20, 2021 at 04:45 pm EDT
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Sysco Corporation announced the commencement of a cash tender offer to purchase its 7.160% Debentures due 2027 (the “7.160% Debentures”), 6.500% Debentures due 2028 (the “6.500% Debentures”), 6.625% Senior Notes due 2039 (the “6.625% Senior Notes”), 5.950% Senior Notes due 2030 (the “5.950% Senior Notes”), 6.600% Senior Notes due 2040 (the “6.600% Senior Notes due 2040”) and 6.600% Senior Notes due 2050 (the “6.600% Senior Notes due 2050” and together with the 7.160% Debentures, the 6.500% Debentures, the 6.625% Senior Notes, the 5.950% Senior Notes and the 6.600% Senior Notes due 2040, the “Securities,” and each, a “series” of Securities). The maximum amount of Securities that will be purchased in the Offer (defined below) will be a combined aggregate principal amount of Securities that could be purchased for a combined aggregate purchase price, determined in accordance with the procedures set forth in the Offer to Purchase and excluding Accrued Interest (defined below), of $750,000,000 (subject to increase, in company sole discretion, the “Total Tender Cap”), subject to the terms and conditions set forth in the Offer to Purchase. Further, the maximum amount of 5.950% Senior Notes that will be purchased in the Offer will be $250,000,000 aggregate principal amount of 5.950% Senior Notes (subject to increase, in company sole discretion, the “Tender SubCap” and together with the Total Tender Cap, the “Tender Caps”), subject to the terms and conditions set forth in the Offer to Purchase. As used herein, the term “Offer” means the offer by Sysco to purchase for cash the Securities on the terms and subject to the conditions set forth in the Offer to Purchase.
Sysco Corporation is North America no. 1 distributor of food products for food industry services and out of home catering sectors. The net sales by market break down as follows:
- restaurant (62%);
- restaurants (66%);
- hospitals and nursing homes (9%);
- schools, universities and government organizations (6%);
- hotels and motels (5%);
- other (14%).
Net sales by family of products break down between fresh and frozen meats (19%), dry and canned products (16%), frozen fruits, vegetables and bakery products (15%), poultry (11%), dairy products (10%), fresh products (8%), paper and disposable products (8%), seafood (5%), beverages (3%) and other (5%).
At the end of June 2021, the group had 326 distribution facilities worldwide.
Net sales break down geographically as follows: the United States (83.1%), Canada (7.6%), the United Kingdom (3.3%), France (2.1%) and other (3.9%).