01—Abstract
Summary
Summary of the 8-K filed September 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Sysco Corporation (SYY) reported in a Form 8-K filed September 8, 2025 that on September 5, 2025 it, together with its wholly-owned subsidiaries Sysco Canada, Inc. and Sysco Global Holdings B.V.
(the Subsidiary Borrowers), entered into a new Credit Agreement with Bank of America, N.A., as Administrative Agent, and the lenders and guarantors party thereto. The New Credit Agreement replaces Sysco's existing $3.0 billiona senior revolving credit facility originally entered into on April 29, 2022. Aggregate lender commitments as of the effective date are $3.0 billion, with an option to increase them to $4.0 billion, and the facility matures on September 5, 2030.
The agreement contains customary terms for credit facilities of this type, including covenants limiting consolidations, mergers, asset sales and liens, reporting covenants, and a requirement to maintain a ratio of consolidated EBITDA to consolidated interest expense. Borrowings by Sysco and the Subsidiary Borrowers are generally guaranteed by Sysco's wholly-owned subsidiaries that guarantee its senior notes and debentures, and borrowings by the Subsidiary Borrowers are guaranteed by Sysco. The new facility will continue to serve as a backstop for Sysco's commercial paper program, as the Existing Credit Agreement did.
The filing states that Sysco has no material relationship with the other parties to the agreement beyond prior credit facilities, under which certain of the lenders were lenders, and customary commercial, investment banking, underwriting, trust and advisory services for which those lenders have received or will receive customary fees. The full agreement is filed as Exhibit 10.1.
02—Key points
Key Highlights
- Sysco entered into a new $3.0 billion senior revolving Credit Agreement on September 5, 2025, replacing its existing $3.0 billion facility originally entered into on April 29, 2022.
- The new facility has an option to increase aggregate commitments to $4.0 billion.
- The New Credit Agreement matures on September 5, 2030.
- Sysco Canada, Inc. and Sysco Global Holdings B.V. are added as Subsidiary Borrowers alongside Sysco Corporation.
- The agreement requires Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense, along with customary negative covenants on mergers, asset sales and liens.
- The facility continues to serve as a backstop for Sysco's commercial paper program.
- Bank of America, N.A. serves as Administrative Agent; the full agreement is filed as Exhibit 10.1.
03—Questions
Frequently Asked Questions
What did Sysco agree to on September 5, 2025?
Sysco, Sysco Canada, Inc. and Sysco Global Holdings B.V. entered into a new Credit Agreement with Bank of America, N.A., as Administrative Agent, and the lenders and guarantors party to it. The agreement replaces Sysco's existing $3.0 billion senior revolving credit facility.
How large is the new credit facility and can it grow?
Aggregate lender commitments as of the effective date are $3.0 billion, with an option to increase them to $4.0 billion.
When does the new credit facility mature?
The New Credit Agreement has a maturity date of September 5, 2030.
What role does the facility play in Sysco's financing?
As with the Existing Credit Agreement, the New Credit Agreement serves as a backstop for Sysco's commercial paper program. Borrowings by Sysco and the Subsidiary Borrowers are generally guaranteed by Sysco's wholly-owned subsidiaries that guarantee its senior notes and debentures.
What financial covenants and restrictions apply under the agreement?
The agreement requires Sysco to maintain a certain ratio of consolidated EBITDA to consolidated interest expense. It also includes covenants limiting consolidations, mergers and asset sales, restricting certain liens, and imposing reporting requirements, along with customary events of default.
04—Continue