Sysco Announces $1.1 Billion Debt Reduction in Anticipation of Impending Market Recovery
Sysco Corporation (NYSE:SYY) has successfully reduced its outstanding debt by a total of $1.1 billion. On March 9, the company paid off $700 million in borrowings from its revolving credit facility, while its UK subsidiary, Brake Bros Limited, repaid approximately $417 million of its commercial paper program debt. These payments, funded with cash on hand, are expected to decrease annual interest expenses by around $15 million. Sysco's CFO expressed confidence in a market recovery and emphasized ongoing investments in transformation efforts.
- Debt reduced by $1.1 billion, improving financial standing.
- Annual interest expenses expected to decrease by approximately $15 million.
- Repaid $700 million in borrowings, enhancing liquidity.
- None.
HOUSTON, March 10, 2021 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY), the leading global foodservice distribution company, announced today it had reduced its outstanding debt by a total of
On March 9, the company repaid the remaining
“We are increasingly confident of the impending market recovery and believe now is a prudent time to begin reducing debt levels. We have strong liquidity and continue to invest against both the market recovery and our transformation efforts,” said Aaron Alt, Sysco’s executive vice president and chief financial officer. “With recent momentum in vaccine approvals and administration, we expect operational restrictions impacting the foodservice industry will begin to ease.”
The debt payments were funded from cash on hand, and will reduce interest expense by approximately
About Sysco
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 57,000 associates, the company operates 326 distribution facilities worldwide and serves more than 625,000 customer locations. For fiscal 2020 that ended June 27, 2020, the company generated sales of more than
For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoCorporation or Twitter at https://twitter.com/Sysco. For important news and information regarding Sysco, visit the Investor Relations section of the company’s Internet home page at www.investors.sysco.com which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.
| For more information contact: | |
| Shannon Mutschler | Rachel Lee |
| Media Contact | Investor Relations Contact |
| Shannon.Mutschler@sysco.com | Rachel.Lee@sysco.com |
| T 281-584-4059 | T 281-436-7815 |
FAQ
What is the total debt reduction announced by Sysco Corporation?
How much did Sysco pay back from its revolving credit facility?
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How will the debt repayment affect Sysco's interest expenses?
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