SYY · 8-K · 20260804PR000026

Interest Rate and Refinancing Exposure

SYSCO CORP · 2026-08-04 · Importance 34 · Surprise 42 · In source text

Sysco incurred a $54 million fiscal 2026 loss on deal-contingent rate lock transactions. The transactions were entered into to mitigate interest-rate risk on future permanent debt that could potentially finance the Jetro Restaurant Depot acquisition. The disclosure indicates that the company may require future debt financing for the planned transaction.

Key facts

• The loss on deal contingent rate lock transactions ($54 million) was entered into to mitigate interest rate risk on future permanent debt that could potentially be issued to finance the purchase of Jetro Restaurant Depot source
• Fiscal year 2026 includes amortization expense associated with debt issuance costs on a bridge loan facility and a loss on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot. source
• Interest expense for fiscal year 2026 was $717 million, an increase of $82 million or 12.9% versus prior year. source
• 52-week period Interest (GAAP) for Jun. 27, 2026: $717 million, compared with $635 million, change $82 million, 12.9% source
• Interest expense in the fourth quarter was $205 million, an increase of $39 million or 23.5% versus the prior year quarter. source
• 13-week period ended Jun. 27, 2026 Interest (GAAP): $205 million, compared with $166 million, change $39 million, 23.5% source
• For fiscal year 2026, other expense (income), net represents $58 million in GAAP other expense (income), net less $54 million in expense from a loss on deal contingent rate lock transactions source

Impact estimates