Sysco enters $3 billion five-year replacement revolving facility

By Marisa Wong

Los Angeles, May 2 – Sysco Corp., Sysco Canada, Inc. and Sysco EU II Sarl entered into a $3 billion credit agreement on April 29 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility replaces Sysco’s existing $2 billion senior revolver that was entered into on June 28, 2019.

The new revolver, which matures on April 29, 2027, includes an option to increase commitments to $4 billion.

Borrowings bear interest at term SOFR (or Euribor, CDOR or Sonia, as applicable) plus an applicable rate of 68 basis points to 122.5 bps, depending on the company’s credit ratings.

The facility fee ranges from 7 bps to 15 bps, also based on ratings.

The credit agreement includes provisions for pricing adjustments linked to key performance indicators with respect to certain environmental, social and governance targets.

The credit agreement also requires maintenance of a specified ratio of consolidated EBITDA to consolidated interest expense.

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

Wells Fargo Bank, NA, JPMorgan Chase Bank, Goldman Sachs Bank and Toronto-Dominion Bank, New York Branch are syndication agents.

BofA Securities, Wells Fargo Securities, TD Securities and Deutsche Bank Securities Inc. are sustainability coordinators.

Deutsche Bank Securities Inc., PNC Bank, NA, Truist Bank and U.S. Bank NA are documentation agents.

The food distributor is based in Houston.

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