Sysco Corp. has commenced a cross-border bond sale, aiming to secure roughly $17 billion. This significant debt offering is intended to finance the foodservice company's pending acquisition of Jetro Restaurant Depot LLC. The initial tranche introduced to the market is a euro hybrid bond, which can be called in six years and is currently being offered at a yield of approximately 6.5% during early price discussions.
Goldman Sachs Group Inc. and Toronto-Dominion Bank were appointed last week as the global coordinators for this large-scale bond offering. The debt sale indicates Sysco's strategy to leverage international debt markets to fund its expansion plans, specifically its acquisition of Jetro Restaurant Depot LLC.
Additional reports indicate that Sysco has also filed to sell a USD-denominated 7-part bond. The total combined issuance, including other tranches, is expected to lead to a "jumbo" offering of $14.65 billion. This multi-currency approach highlights the substantial capital requirements for the acquisition and Sysco's efforts to attract a broad base of investors across different markets.
