Sysco gets $2 billion revolving facility at Libor plus 70-112.5 bps

By Sarah Lizee

Olympia, Wash., July 3 – Sysco Corp. entered into a credit agreement with JPMorgan Chase Bank, NA as administrative agent, providing for $2 billion of revolving commitments due June 28, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the credit agreement on June 28 with subsidiaries Sysco Canada, Inc. and Sysco EU II Sarl.

Interest is Libor plus 70 basis points to 112.5 bps, depending on the company’s debt ratings.

There is a facility fee that ranges from 5 bps to 12.5 bps, also depending on ratings.

The new credit agreement replaces the company’s existing $2 billion senior revolver that was entered into on Nov. 2, 2016.

The credit agreement contains negative covenants containing limitations on consolidations, mergers, and sales of assets, and limitations on the incurrence of some liens.

As was the case with the existing credit agreement, the new credit agreement will serve as a backstop for Sysco’s commercial paper program.

JPMorgan, BofA Securities, Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners and joint lead arrangers.

Bank of America, NA, Goldman, Toronto-Dominion Bank, New York Branch and Wells Fargo Bank, NA are syndication agents.

Sysco is a Houston-based food service marketing and distribution company.

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