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Sysco to redeem $5 billion of senior notes after merger called off
By Wendy Van Sickle
Columbus, Ohio, June 29 – Sysco Corp. will redeem all $5 billion of six series of outstanding senior notes after its termination of a planned merger with USF Holding Corp., the parent company of US Foods, Inc., according to an 8-K filed Monday with the Securities and Exchange Commission.
The notes are required to be redeemed within 40 days of Monday’s termination agreement at 101% of par plus accrued interest.
The notes were issued on Oct. 2, 2014 in six tranches: $500 million of 1.45% three-year notes; $750 million of 2.35% five year notes; $750 million of 3% seven-year notes; $1.25 billion of 3.5% 10-year notes; $750 million of 4.35% 20-year notes; and $1 billion of 4.5% 30-year notes.
As previously reported, proceeds were to be used to fund the merger, to refinance US Foods’ debt, to unwind cash flow hedges, to repay commercial paper and to pay expected costs related to the merger.
Sysco is a Houston-based food service marketing and distribution company.
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