As we continue to navigate a fluctuating market caused by the effects of the pandemic, one company is displaying its confidence in imminent market recovery, as Sysco recently announced a vital new strategy to ensure its strong positioning and growth by reducing its outstanding debt by $1.1 billion.
“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, 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.”
On March 9, Sysco repaid the remaining $700 million in outstanding borrowings under its long-term revolving credit facility that expires on June 28, 2024.
Sysco’s United Kingdom-based subsidiary, Brake Bros Limited, also repaid £300 ($419) million of its £600 ($839) million in aggregate principal amount of notes outstanding under its commercial paper program, which equates to almost $417 million in debt reduction, according to a release from the company.
All debt payments were funded from cash on hand, and will help reduce interest expenses by approximately $15 million yearly.
New strategies will continue to emerge as more companies try to get a leg up in a rapidly evolving market, so keep reading Deli Market News.
