SYY · 10-K · 2026A · Full report

Debt Financing and Interest Expense

SYSCO CORP · 2026-08-21 · Importance 81 · Surprise 76 · No source text

Sysco’s fiscal 2026 interest expense increased $82 million, or 12.9%, primarily because of newly issued senior notes and bridge-loan issuance-cost amortization. To finance the planned Jetro Restaurant Depot transaction, Sysco committed to a $22 billion senior unsecured 364-day bridge facility, later reduced to $19 billion after a $3 billion delayed-draw term loan facility was added. The delayed-draw facility consists of a $1.25 billion 364-day tranche and a $1.75 billion two-year tranche; upfront fees totaled $126 million as of August 4, 2026. The bridge facility added approximately $30 million of fiscal 2026 interest expense and is expected to add approximately $96 million in fiscal 2027; total fiscal 2027 interest expense is expected to be approximately $770 million, or $675 million adjusted.

Key facts

• Sysco executed a commitment letter for a $22 billion senior unsecured 364-day bridge loan facility to potentially fund the Jetro Restaurant Depot purchase and related costs. source
• Sysco entered into a $3 billion senior unsecured delayed-draw term loan facility, with a $1.25 billion 364-day tranche and a $1.75 billion two-year tranche, reducing bridge-loan commitments from $22 billion to $19 billion. source
• On April 16, 2026, Sysco entered a new $3.0 billion long-term revolving credit facility replacing its existing $3.0 billion facility; commitments will increase to $4.0 billion after the Jetro Restaurant Depot acquisition closes, with an option to increase to $5.0 billion. source
• Sysco's fiscal 2027 interest expense was expected to be approximately $770 million, including bridge-loan debt-issuance-cost amortization related to the planned Jetro Restaurant Depot acquisition; adjusted interest expense was expected to be approximately $675 million. source
• The bridge facility added approximately $30 million of interest expense in fiscal 2026 and is expected to add approximately $96 million in fiscal 2027. source
• Sysco expected to finance the cash portion of the Jetro Restaurant Depot purchase price with a combination of new senior unsecured notes, hybrid debt, cash on hand, and equity or equity-linked securities. source
• Sysco's new revolving credit facility requires a consolidated EBITDA-to-interest-expense ratio of 3.0 to 1.0 over four consecutive fiscal quarters and expires April 16, 2031. source
• Sysco has senior notes of $43 million and $749 million maturing on April 15, 2027 and July 15, 2027, respectively, and expects to repay them using operating cash flows and proceeds from commercial paper and long-term debt issuances. source

Impact estimates