US Foods issues conditional call notice for 8½% notes at 106.375

By Angela McDaniels

Tacoma, Wash., Sept. 23 – US Foods, Inc. plans to redeem all of its $1.35 billion 8½% senior notes due 2019 on Oct. 23, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price will be 106.375% of par plus accrued interest up to the redemption date.

The redemption is conditioned on the completion of Sysco Corp.’s acquisition of USF Holding Corp., which owns all of the outstanding common stock of US Foods.

If the acquisition has not closed by Oct. 23, the redemption will take place once this condition is satisfied. If the acquisition has not closed by Nov. 22, the redemption notice will be rescinded and the notes will not be redeemed.

US Foods and Sysco are both distributors of food products to restaurants, health-care and education facilities and lodging establishments. They are based in Rosemont, Ill., and Houston, respectively.

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