Item 1.01 Entry into Material Definitive Agreement.
On September 22, 2021, Sysco Corporation ("Sysco") entered into an amendment
(the "Amendment") to the Credit Agreement dated as of June 28, 2019, as
previously amended on May 20, 2020 and May 20, 2021, with JPMorgan Chase Bank,
N.A., as administrative agent and the lenders party thereto (the "Existing
Credit Agreement"). The Amendment revises the Existing Credit Agreement to
(a) eliminate the covenant that had restricted (i) increases to Sysco's regular
quarterly dividend and (ii) repurchases of equity interests of Sysco, in each
case, until the earlier of September 2022 or the date on which Sysco has
achieved a certain ratio of consolidated EBITDA to consolidated interest
expense, and (b) adjust the covenant requiring Sysco to maintain a certain ratio
of consolidated EBITDA to consolidated interest expense.
The foregoing description of the Amendment does not purport to be complete and
is qualified in its entirety by reference to the full text of the Amendment,
which is filed as Exhibit 10.1 hereto and incorporated by reference herein.
Neither Sysco nor any of its affiliates has any material relationship with any
of the other parties to the Existing Credit Agreement, except for (i) the
Company's previous credit facilities, with respect to which certain of the other
parties to the Existing Credit Agreement (and their respective affiliates) were
lenders and (ii) commercial banking, investment banking, underwriting, trust and
other financial advisory services provided (or to be provided) to Sysco and its
subsidiaries by certain of the lenders under the Existing Credit Agreement (and
their respective affiliates), for which they have received (or will receive)
customary fees and expenses.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information included in Item 1.01 of this report is incorporated herein by
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
(b) Pro Forma Financial Information.
(c) Shell Company Transactions.
Exhibit Number Description
10.1 Amendment No. 3 dated as of September 22, 2021 to Credit
Agreement dated as of June 28, 2019, among Sysco Corporation,
Sysco Canada, Inc., Sysco EU II S.à r.l., the subsidiary
guarantors party thereto, JP Morgan Chase Bank, N.A., as
administrative agent, and the lenders party thereto
104 Cover Page Interactive Data File (embedded within the Inline
© Edgar Online, source Glimpses