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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