Sysco 2009 Annual Report Download - page 66

11. DEBT AND OTHER FINANCING ARRANGEMENTS
Sysco’s debt consists of the following:
June 27, 2009 June 28, 2008
Senior notes, interest at 6.1%, maturing in fiscal 2012 ............................. $ 200,279,000 $ 200,372,000
Senior notes, interest at 4.2%, maturing in fiscal 2013 ............................. 249,702,000 249,619,000
Senior notes, interest at 4.6%, maturing in fiscal 2014 ............................. 205,219,000 206,331,000
Senior notes, interest at 5.25%, maturing in fiscal 2018 ............................ 497,028,000 496,683,000
Senior notes, interest at 5.375%, maturing in fiscal 2019 ........................... 248,351,000 —
Debentures, interest at 7.16%, maturing in fiscal 2027 ............................. 50,000,000 50,000,000
Debentures, interest at 6.5%, maturing in fiscal 2029 . ............................. 224,546,000 224,522,000
Senior notes, interest at 5.375%, maturing in fiscal 2036 ........................... 499,611,000 499,596,000
Senior notes, interest at 6.625%, maturing in fiscal 2039 ........................... 245,199,000 —
Industrial Revenue Bonds and other debt, interest averaging 5.9% as of June 27, 2009 and
6.2% as of June 28, 2008, maturing at various dates to fiscal 2026. .................. 56,714,000 53,208,000
Total debt ............................................................ 2,476,649,000 1,980,331,000
Less current maturities and short-term debt .................................... (9,163,000) (4,896,000)
Net long-term debt . . .................................................... $ 2,467,486,000 $ 1,975,435,000
The principal payments required to be made during the next five fiscal years on debt outstanding as of June 27, 2009 are shown below:
Amount
2010 ................................................................................ $ 9,163,000
2011 ................................................................................ 6,646,000
2012 ................................................................................ 204,390,000
2013 ................................................................................ 252,314,000
2014 ................................................................................ 206,887,000
Short-term Borrowings
As of June 27, 2009, Sysco had uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up to
$88,000,000, of which none was outstanding. As of June 28, 2008, Sysco had uncommitted bank lines of credit, which provided for unsecured
borrowings of working capital of up to $145,000,000, of which none was outstanding.
The company’s Irish subsidiary, Pallas Foods Limited, has a ¤20,000,000 (Euro) committed facility for unsecured borrowings for working
capital, which expires March 31, 2010. There were no borrowings outstanding under this facility as of June 27, 2009.
Commercial Paper
Sysco has a Board-approved commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount
not to exceed $1,300,000,000.
Sysco and one of its subsidiaries, Sysco International, Co., have a revolving credit facility supporting the company’s U.S. and Canadian
commercial paper programs. The facility in the amount of $1,000,000,000 expires on November 4, 2012, but is subject to extension.
During fiscal 2009, 2008 and 2007, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from
approximately zero to $164,998,000, zero to $1,113,241,000, and $356,804,000 to $755,180,000, respectively. There were no commercial paper
issuances outstanding as of June 27, 2009 and June 28, 2008, respectively.
Fixed Rate Debt
In April 2007, Sysco repaid the 7.25% senior notes totaling $100,000,000 at maturity utilizing a combination of cash flow from operations and
commercial paper issuances.
In January 2008, the SEC granted our request to terminate our then existing shelf registration statement that was filed with the SEC in April
2005 for the issuance of debt securities. In February 2008, we filed an automatically effective well-known seasoned issuer shelf registration
statement for the issuance of up to $1,000,000,000 in debt securities with the SEC.
In February 2008, we issued 4.20% senior notes totaling $250,000,000 due February 12, 2013 (the 2013 notes) and 5.25% senior notes
totaling $500,000,000 due February 12, 2018 (the 2018 notes) under our February 2008 shelf registration. The 2013 and 2018 notes, which were
priced at 99.835% and 99.310% of par, respectively, are unsecured, are not subject to any sinking fund requirement and include a redemption
provision which allows us to retire the notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure
that the note holders are not penalized by the early redemption. Proceeds from the notes were utilized to retire commercial paper issuances
outstanding as of February 2008.
In February 2009, Sysco deregistered the securities remaining unsold under its then existing shelf registration statement that was filed with the
Securities and Exchange Commission (SEC) in February 2008 for the issuance of debt securities. In February 2009, Sysco filed with the SEC an
automatically effective well-known seasoned issuer shelf registration statement for the issuance of an indeterminate amount of debt securities that
may be issued from time to time.
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