SYY · Sysco Corporation

Sysco Corporation has executed two significant credit agreements on April 16, 2026, materially enhancing its liquidity and financing flexibility ahead of the Jetro Restaurant Depot acquisition. The $3 billion New Revolver Credit Agreement replaces the existing facility and provides immediate access to revolving borrowings for general corporate purposes while serving as a backstop for Sysco's commercial paper program. Commitments automatically increase to $4 billion upon Jetro closing (with a $5 billion accordion option), supporting post-acquisition working capital needs. The $3 billion New Term Credit Agreement features two tranches tailored to the acquisition timeline: $1.25 billion Tranche A (364-day maturity post-closing) and $1.75 billion Tranche B (2-year maturity post-closing), with proceeds explicitly allocated to partially fund the Jetro merger, refinance target indebtedness, and cover related costs. Both facilities include standard protections such as subsidiary guarantees (aligned with Sysco's senior notes), negative covenants limiting liens and fundamental changes, and a financial maintenance covenant requiring a minimum 3.0x consolidated EBITDA-to-interest expense ratio. This structure demonstrates strong lender confidence in Sysco's credit profile and strategic execution, positioning the company to seamlessly integrate Jetro while maintaining robust access to capital markets.