Sysco Establishes $750M Term Loan Facility; Approves Executive Awards
Sysco Corporation has entered into a First Amendment to its Credit Agreement, establishing a $750 million senior unsecured delayed draw term loan facility. This facility includes two tranches, a $375 million six-year and a $375 million eight-year, available for drawing over one year. The funds are designated for general corporate purposes, including acquisitions, specifically mentioning the JRD Acquisition. Additionally, the company approved performance share units for CEO Kevin P. Hourican and Interim CFO Brandon E. Sewell, valued at $3 million combined, contingent on the JRD Acquisition's closing. A $700,000 cash award was also approved for CHRO Ronald L. Phillips, linked to AI initiatives and the acquisition's completion.
Key Highlights
- Sysco established a $750 million senior unsecured delayed draw term loan facility.
- The facility includes a $375 million six-year tranche and a $375 million eight-year tranche.
- Proceeds will be used for general corporate purposes, including acquisitions like the JRD Acquisition.
- Kevin P. Hourican and Brandon E. Sewell approved for performance share units totaling $3 million, contingent on JRD Acquisition closing.
- Ronald L. Phillips approved for a $700,000 cash award tied to AI transformation efforts and JRD Acquisition closing.
Price Impact
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