Benzinga | Mar 10, 2021 08:07AM EST

Sysco Reports Reduced Outstanding Debt By $1.1B, Repaid Remaining $700M In Outstanding Borrowings

Sysco Corporation (NYSE:SYY), the leading global foodservice distribution company, announced today it had reduced its outstanding debt by a total of $1.1 billion.

On March 9, the company repaid the remaining $700 million in outstanding borrowings under its long-term revolving credit facility that expires on June 28, 2024. In addition, on March 10, Sysco's United Kingdom-based subsidiary, Brake Bros Limited, repaid ?300 million of its ?600 million in aggregate principal amount of notes outstanding under its commercial paper program, equating to approximately $417 million in debt reduction.

"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, Sysco's 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."

The debt payments were funded from cash on hand, and will reduce interest expense by approximately $15 million annually.