Published on 12/1/2021 in the Prospect News Investment Grade Daily.
New Issue: Sysco sells $1.25 billion of 10- and 30-year senior notes
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Dec. 1 – Sysco Corp. priced a combined $1.25 billion of 10- and 30-year senior notes (Baa1/BBB/BBB) in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The issuer sold $450 million of 2.45% 10-year senior notes at Treasuries plus 105 basis points compared to talk in the Treasuries plus 125 bps area. Pricing was at 99.578 to yield 2.498%.
Sysco also sold $800 million of 3.15% 30-year notes at 99.308 to yield 3.186%, or 140 bps over Treasuries, versus talk in the 160 bps area over Treasuries.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.
Proceeds will be used, together with cash on hand, to redeem the company’s 5.65% notes due April 1, 2025 and 3.55% notes due March 15, 2025.
Sysco is a Houston-based food service marketing and distribution company.
| Issuer: | Sysco Corp.
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | PNC Capital Markets LLC, Santander Investment Securities Inc., Siebert Williams Shank & Co., LLC, Truist Securities, Inc., Academy Securities, Inc., Barclays, BNP Paribas Securities Corp., CastleOak Securities, LP, Lloyds Securities Inc., Rabo Securities USA, Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Trade date: | Dec. 1
|
| Settlement date: | Dec. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 14, 2031
|
| Coupon: | 2.45%
|
| Price: | 99.578
|
| Yield: | 2.498%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Sept. 14, 2031, then a par call
|
| Talk: | Treasuries plus 125 bps area
|
| Cusip: | 871829BQ9
|
|
|
| 30-year notes
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 14, 2051
|
| Coupon: | 3.15%
|
| Price: | 99.308
|
| Yield: | 3.186%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until June 14, 2051, then a par call
|
| Talk: | Treasuries plus 160 bps area
|
| Cusip: | 871829BR7
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
