SYSCO CORPSYY
SYSCO CORP Debt Disclosure
DEBT AND OTHER FINANCING ARRANGEMENTS
| Jun. 28, 2025 | Jun. 29, 2024 | ||||||||||
| (In millions) | |||||||||||
Euro Commercial paper, interest at 2.22%, maturing in fiscal 2026 | $ | 205 | $ | — | |||||||
U.S. Commercial paper, interest at 5.45%, matured in fiscal 2025 | — | 200 | |||||||||
Senior notes, interest at 3.65%, matured in fiscal 2025 (1) | — | 365 | |||||||||
Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2) | 750 | 749 | |||||||||
Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2) | 999 | 998 | |||||||||
Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3) | 43 | 43 | |||||||||
Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2) | 748 | 747 | |||||||||
Debentures, interest at 6.50%, maturing in fiscal 2029 (2) | 155 | 155 | |||||||||
Senior notes, interest at 5.75%, maturing in fiscal 2029 (1)(2) | 497 | 496 | |||||||||
Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2) | 498 | 497 | |||||||||
Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2) | 995 | 994 | |||||||||
Senior notes, interest at 5.10%, maturing in fiscal 2031 (1)(2) | 695 | — | |||||||||
Senior notes, interest at 2.45%, maturing in fiscal 2032 (1)(2) | 447 | 446 | |||||||||
Senior notes, interest at 6.00%, maturing in fiscal 2034 (1)(2) | 507 | 498 | |||||||||
Senior notes, interest at 5.40%, maturing in fiscal 2035 (1)(2) | 562 | — | |||||||||
Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2) | 383 | 383 | |||||||||
Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2) | 200 | 200 | |||||||||
Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2) | 350 | 350 | |||||||||
Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2) | 497 | 497 | |||||||||
Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2) | 495 | 495 | |||||||||
Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2) | 493 | 493 | |||||||||
Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2) | 495 | 495 | |||||||||
Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2) | 1,177 | 1,177 | |||||||||
Senior notes, interest at 3.15%, maturing in fiscal 2052 (1)(2) | 788 | 788 | |||||||||
Plant and equipment financing programs, finance leases, notes payable, and other debt, interest averaging 5.14% and maturing at various dates to fiscal 2052 as of June 28, 2025, and 5.13% and maturing at various dates to fiscal 2052 as of June 29, 2024 | 1,330 | 916 | |||||||||
| Total debt | 13,309 | 11,982 | |||||||||
| Less current maturities of long-term debt | (949) | (469) | |||||||||
| Net long-term debt | $ | 12,360 | $ | 11,513 | |||||||
(1) | Represents senior notes that 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. | ||||
(2) | Represents senior notes, debentures and borrowings under the company’s long-term revolving credit facility that are guaranteed by certain wholly owned U.S. Broadline subsidiaries of Sysco Corporation as discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” | ||||
(3) | This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. | ||||
As of June 28, 2025, the principal and interest payments required to be made during the next five fiscal years on Sysco’s senior notes and debentures are shown below:
| Principal | Interest (1) | ||||||||||
| (In millions) | |||||||||||
| 2026 | $ | 750 | $ | 543 | |||||||
| 2027 | 1,043 | 508 | |||||||||
| 2028 | 750 | 476 | |||||||||
| 2029 | 655 | 464 | |||||||||
| 2030 | 1,500 | 435 | |||||||||
(1) | Includes payments on floating rate debt based on rates as of June 28, 2025, assuming amount remains unchanged until maturity, and payments on fixed rate debt based on maturity dates. | ||||
The total carrying value of our debt was $13.3 billion as of June 28, 2025 and $12.0 billion as of June 29, 2024. The increase in the carrying value of our debt from the prior year was due to new issuances of senior notes, new leases in support of plant and equipment, and new commercial paper issuances.
Sysco has a long-term revolving credit facility that includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. The facility includes a covenant requiring Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 over four consecutive fiscal quarters. The facility expires on April 29, 2027. As of June 28, 2025, there were no borrowings outstanding under this facility.
Sysco has a U.S commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $3.0 billion. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. As of June 28, 2025, there were no commercial paper issuances outstanding under this program. On June 12, 2025, we entered into a new commercial paper dealer agreement in Europe for a commercial paper program with borrowings not to exceed €500 million. As of June 28, 2025, there were €175 million (the equivalent of $205 million) in commercial paper issuances outstanding under this program.
On February 25, 2025, Sysco issued senior notes (the Notes) totaling $1.25 billion. Details of the Notes are as follows:
| Maturity Date | Par Value (in millions) | Coupon Rate | Pricing (percentage of par) | ||||||||||||||
| September 23, 2030 (the 2030 Notes) | $ | 700 | 5.10 | % | 99.975 | % | |||||||||||
| March 23, 2035 (the 2035 Notes) | 550 | 5.40 | 99.924 | ||||||||||||||
The Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes issued under the indenture governing the Notes or any of Sysco’s other indebtedness. Interest on the Notes will be paid semi-annually in arrears on March 23 and September 23, beginning on September 23, 2025. At Sysco’s option, any or all of the Notes may be redeemed, in whole or in part, at any time prior to maturity. If we elect to redeem (i) the 2030 Notes before the date that is one month prior to the maturity date, or (ii) the 2035 Notes before the date that is three months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such senior notes matured on the applicable date described above. If we elect to redeem a series of Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Notes redeemed to the redemption date.
As of June 28, 2025 and June 29, 2024, letters of credit outstanding were $306 million and $271 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 22, 2025 | Showing above |
| 2024 | Aug 28, 2024 | |
| 2023 | Aug 25, 2023 | |
| 2022 | Aug 26, 2022 | |
| 2021 | Aug 30, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 26, 2019 | |
| 2018 | Aug 27, 2018 | |
| 2017 | Aug 30, 2017 | |
| 2016 | Aug 30, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.