HOUSTON, TX - As the market continues to fluctuate due to shifting pandemic demands, Sysco announced its confidence in imminent market recovery by introducing a crucial new strategy to ensure its strong positioning. This will be achieved 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 made the move to repay the remaining $700 million in outstanding borrowings under its long-term revolving credit facility that expires on June 28, 2024.

According to a release from the company, 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.

All debt payments were funded from cash on hand, and will help reduce interest expenses by approximately $15 million each year.

As companies across the industry introduce market strategies to weather the changes brought on by the pandemic, AndNowUKnow will continue to report.

Sysco