Sysco 2012 Annual Report Download - page 80
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PARTII
ITEM8Financial Statements and Supplementary Data
The principal payments required to be made during the next fi ve fi scal years on debt outstanding as of June30,2012 are shown below:
(In thousands)
Amount
2013 $ 254,650
2014 210,799
2015 302,135
2016 2,340
2017 1,807
Short-term Borrowings
As of June30,2012 and July2,2011, Sysco had uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up to
$95.0million. There were no borrowings outstanding under these lines of credit as of June30,2012 or July2,2011, respectively.
As of June30,2012 and July2,2011, the company’s Irish subsidiary, Pallas Foods Limited, had a €10.0million (Euro) committed facility for unsecured
borrowings for working capital. There were no borrowings outstanding under this facility as of June30,2012 or July2,2011, respectively.
On June30,2011, a Canadian subsidiary of Sysco entered into a short-term demand loan facility for the purpose of facilitating a distribution from the Canadian
subsidiary to Sysco, and Sysco concurrently entered into an agreement with the bank to guarantee the loan. As of July2,2011, the amount outstanding
under the facility was $182.0million. The interest rate under the facility was 2.0% and payable on the due date. The loan was repaid in full on July4,2011.
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 $1,300.0million.
In December2011, Sysco terminated its previously existing revolving credit facility that supported the company’s U.S. and Canadian commercial paper
programs. At the same time, Sysco and one of its subsidiaries, Sysco International, ULC, entered into a new $1,000.0million credit facility supporting
the company’s U.S. and Canadian commercial paper programs. This facility provides for borrowings in both U.S. and Canadian dollars. Borrowings by
Sysco International, ULC under the credit agreement are guaranteed by Sysco, and borrowings by Sysco and Sysco International, ULC under the credit
agreement are guaranteed by all wholly-owned subsidiaries of Sysco that are guarantors of the company’s senior notes and debentures. The facility expires
on December29,2016, but is subject to extension.
During fi scal 2012,2011, and 2010, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from approximately zero
to $563.1million, zero to $330.3million, and zero to $1.8million, respectively. There were no commercial paper issuances outstanding as of June30,2012
and July2,2011, respectively.
Fixed Rate Debt
In February2012, Sysco fi led with the Securities and Exchange Commission an automatically effective well-known seasoned issuer shelf registration
statement for the issuance of an indeterminate amount of common stock, preferred stock, debt securities and guarantees of debt securities that may be
issued from time to time.
In June2012, Sysco repaid the 6.1% senior notes totaling $200.0million at maturity utilizing a combination of cash fl ow from operations and commercial
paper issuances.
In June2012, Sysco issued 0.55% senior notes totaling $300.0million due June12,2015 (the 2015 notes) and 2.6% senior notes totaling $450.0million
due June12,2022 (the 2022 notes) under its February2012 shelf registration. The 2015 and 2022 notes, which were priced at 99.319% and 98.722% 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, refi nancing of
debt, working capital, share repurchases and capital expenditures.
The 4.2% senior notes due February12,2013, 4.6% senior notes due March15,2014, the 5.25% senior notes due February12,2018, the 5.375%
senior notes due March17,2019, the 6.5% debentures due August1,2028, the 5.375% senior notes due September21,2035 and the 6.625% senior
notes due March17,2039 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.