Sysco 2010 Annual Report Download - page 73
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Please find page 73 of the 2010 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.The principal payments required to be made during the next five fiscal years on debt outstanding as of July 3, 2010 are shown below:
Amount
(In thousands)
2011 . . ............................................................................... $ 7,970
2012 . . ............................................................................... 205,820
2013 . . ............................................................................... 256,216
2014 . . ............................................................................... 210,503
2015 . . ............................................................................... 2,713
Short-term Borrowings
As of July 3, 2010 and June 27, 2009, Sysco had uncommitted bank lines of credit, which provided for unsecured borrowings for working capital
of up to $88.0 million. There were no borrowings outstanding under these lines of credit as of July 3, 2010 or June 27, 2009, respectively.
As of July 3, 2010, the company’s Irish subsidiary, Pallas Foods Limited, had a ¤10.0 million (Euro) committed facility for unsecured borrowings
for working capital. There were no borrowings outstanding under this facility as of July 3, 2010. As of June 27, 2009, Pallas Foods Limited had
a ¤20.0 million (Euro) committed facility for unsecured borrowings for working capital, which had an expiration date of March 31, 2010. There were
no borrowings outstanding under this facility as of June 27, 2009.
Commercial Paper and Revolving Credit Facility
Sysco has a Board-approved commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount
not to exceed $1,300.0 million.
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 $1,000.0 million expires on November 4, 2012, but is subject to extension.
During fiscal 2010, 2009 and 2008, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from
approximately zero to $1.8 million, zero to $165.0 million, and zero to $1,113.2 million, respectively. There were no commercial paper issuances
outstanding as of July 3, 2010 and June 27, 2009, respectively.
Fixed Rate Debt
In January 2008, the Securities and Exchange Commission (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 $1,000.0 million in debt securities with the SEC.
In February 2008, we issued 4.20% senior notes totaling $250.0 million due February 12, 2013 (the 2013 notes) and 5.25% senior notes
totaling $500.0 million 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
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.
In March 2009, Sysco issued 5.375% senior notes totaling $250.0 million due March 17, 2019 (the 2019 notes) and 6.625% senior notes
totaling $250.0 million due March 17, 2039 (the 2039 notes) under its February 2009 shelf registration. The 2019 and 2039 notes, which were
priced at 99.321% and 98.061% of par, respectively, are unsecured, are not subject to any sinking fund requirement and include a redemption
provision which allows Sysco 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 early redemption. Proceeds from the notes will be utilized over a period of time for general
corporate purposes, which may include acquisitions, refinancing of debt, working capital, share repurchases and capital expenditures.
The 4.60% senior notes due March 15, 2014, the 5.375% senior notes due September 21, 2035 and the 6.5% debentures due August 1, 2028
are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and
notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders
are not penalized by the early redemption.
The 7.16% debentures due April 15, 2027 are unsecured, are not subject to any sinking fund requirement and are no longer redeemable prior to
maturity.
The 6.10% senior notes due June 1, 2012, issued by Sysco International, Co., a wholly-owned subsidiary of Sysco, are fully and unconditionally
guaranteed by Sysco Corporation, are not subject to any sinking fund requirement, and include a redemption provision which allows Sysco
International, Co. 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.
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