Sysco ups tender offer to $1 billion, gives early results, pricing

Chicago, June 4 – Sysco Corp. announced the early tender results and upsized its cash tender offer for six series of notes, according to a press release on Friday.

Later during the day, pricing was set for each of the series and the amount of notes to be accepted was also announced.

The company is increasing the maximum amount of securities it will purchase to $1 billion from an original $750 million.

As of the early deadline at 5 p.m. ET on June 3, the company had received tenders for, and will accept, the following amounts of notes, listed in priority order with the first three series all at acceptance priority level one:

• All of the $1.1 million, or 2.48%, of the $44,276,000 of 7.16% debentures due 2027 (Cusip: 871829AD9) priced based on the 0.75% Treasury note due April 30, 2026 plus 115 basis points for a full tender consideration of $1,288.61 per $1,000 note;

• All of the $7,639,000, or 4.68%, of the $163,054,000 of 6.5% debentures due 2028 (Cusip: 871829AF4) priced based on the 1.625% Treasury note due May 15, 2031 plus 65 bps for a full tender consideration of $1,280.65 per $1,000 note;

• All of the $507,000, or 0.25%, of the $203,007,000 of 6.625% senior notes due 2039 (Cusip: 871829AN7) priced based on the 1.875% Treasury note due Feb. 15, 2041 plus 105 bps for a full tender consideration of $1,455.01 per $1,000 note;

• $249,987,000 of the $742,465,000, or 59.4%, of the $1.25 billion of 5.95% senior notes due 2030 (Cusip: 871829BL0) priced based on the 1.625% Treasury note due May 15, 2031 plus 70 bps for a full tender consideration of $1,284.04 per $1,000 note;

• All of the $395,026,000, or 52.67%, of the $750 million of 6.6% senior notes due 2040 (Cusip: 871829BM8) priced based on the 1.625% Treasury note due Feb. 15, 2041 plus 105 bps for a full tender consideration of $1,461.72 per $1,000 note; and

• $58,123,000 of the $612,508,000, or 49%, of the $1.25 billion of 6.6% senior notes due 2050 (Cusip: 871829BN6) priced based on the 1.625% Treasury note due Feb. 15, 2051 plus 127 bps for a full tender consideration of $1,542.37 per $1,000 note.

There was a $250 million sub-cap for the 5.95% notes.

There will be an early tender payment of $50 per $1,000 principal amount that will be paid only to holders who tendered by 5 p.m. ET on June 3.

Holders will also receive accrued interest.

Pricing was determined at 10 a.m. ET on June 4.

Early settlement is expected for June 7.

Tenders may no longer be withdrawn.

The offer will expire at 11:59 p.m. ET on June 17. However, the total tender cap has been exceeded and Sysco does not expect to purchase any tenders of securities after the early tender time.

BofA Securities, Inc. (888 292-0070 or 980 387-3907), TD Securities (USA) LLC (866 584-2096 or 212 827-7795) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) are the lead dealer managers.

D. F. King & Co., Inc. (866 796-7182 or syy@dfking.com) is tender and information agent.

Sysco is a Houston-based distributor of food products to restaurants, health care and educational facilities, and lodging establishments.

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