Sodexo plans to repay $1.6 billion private placement by year end

Chicago, June 25 – Sodexo plans to repay $1.6 billion of outstanding private placement debt to allow for greater independence and agility, according to a press release.

The company had nearly €5 billion of liquidity at the end of May.

The private placement agreements include a make-whole call for approximately €149 million.

By repaying the debt early, future financial costs will be reduced by €198 million, or €52 million in 2021.

The average cost of debt going forward will be approximately 1.2%, versus 2.3% at the end of the first fiscal half of 2020.

Sodexo is a Paris-based hospitality company.

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