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Published on 2/7/2008 in the Prospect News Investment Grade Daily.

New Issue: Sysco prices $750 million senior notes in five-, 10-year tranches

By Andrea Heisinger

Omaha, Feb. 7 - Sysco Corp. priced $750 million of senior notes (A1/A+) in two tranches Thursday, an informed source said.

The $250 million of 4.2% five-year notes priced at 99.835 to yield 4.237%, or Treasuries plus 145 basis points. The tranche has a make-whole call at Treasuries plus 25 bps.

The $500 million of 5.25% 10-year notes priced at 99.31 to yield 5.34%, or Treasuries plus 160 bps. The tranche has a make-whole call at Treasuries plus 30 bps.

Both tranches had price talk 5 bps wider than where they priced, a source close to the deal said.

Bookrunners were Goldman Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities Inc.

Proceeds will be used to repay outstanding commercial paper issued to fund working capital requirements, share repurchases and dividends.

The food service marketing and distribution company is based in Houston.

Issuer:Sysco Corp.
Issue:Senior notes
Amount:$750 million
Bookrunners:Goldman Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities Inc.
Trade date:Feb. 7
Settlement date:Feb. 12
Ratings:Moody's: A1
Standard & Poor's: A+
Five-year tranche
Amount:$250 million
Maturity:Feb. 12, 2013
Coupon:4.2%
Price:99.835
Yield:4.237%
Spread:Treasuries plus 145 bps
Call:Make-whole at Treasuries plus 25 bps
Price talk:145 to 150 bps
10-year tranche
Amount:$500 million
Maturity:Feb. 12, 2018
Coupon:5.25%
Price:99.31
Yield:5.34%
Spread:Treasuries plus 160 bps
Call:Make-whole at Treasuries plus 30 bps
Price talk:160 to 165 bps

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