Sysco Corporation Taps $1.24 Billion in Senior Notes Offering

Sysco Corporation announced on February 25, 2025, that it has issued and sold two series of senior notes, raising aggregate net proceeds of approximately $1.24 billion. Under the terms of the offering, the Company sold $700 million aggregate principal amount of 5.100% Senior Notes due 2030 and $550 million aggregate principal amount of 5.400% Senior Notes due 2035.

The senior notes were offered and sold pursuant to an automatically effective Registration Statement on Form S-3ASR. The 2030 Notes, which bear interest at a rate of 5.100% per annum, make semi-annual interest payments beginning September 23, 2025, and will mature on September 23, 2030. The 2035 Notes, carrying a 5.400% per annum interest rate with the same semi-annual payment schedule, are scheduled to mature on March 23, 2035.

Issued under the Company’s Base Indenture—supplemented by subsequent supplemental indentures—the notes are unsecured obligations that rank equally with the Company’s other unsecured senior indebtedness. The indentures, which also include provisions regarding redemption rights prior to designated “Par Call Dates” and conditions triggering a Change of Control Repurchase Event, provide that, subject to specified conditions, Sysco may redeem the notes either prior to or after the Par Call Dates at predetermined redemption prices.

The net proceeds from the sale of the notes will be used for general corporate purposes, including the repayment of borrowings under the Company’s commercial paper programs. The transaction details, including the specific terms and conditions as outlined in the respective supplemental indentures, were fully disclosed in the Company’s Form 8-K filing with the Securities and Exchange Commission.

Sysco’s financing move reflects its ongoing efforts to strengthen its balance sheet and enhance liquidity while maintaining flexibility in its capital structure. Additional information regarding the terms of the senior note offering is available in the supporting documentation filed with the SEC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sysco’s 8K filing here.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.