DESCRIPTION OF NOTES
The following description of certain material terms of the notes and the guarantees does not purport to be complete. This description adds information to the description of the general terms and provisions of the senior debt securities and guarantees in the accompanying prospectus. To the extent this summary differs from the summary in the accompanying prospectus, you should rely on the description in this prospectus supplement.
The following description is subject to, and is qualified in its entirety by reference to, the indenture (the “base indenture”), dated June 15, 1995, between Sysco and The Bank of New York Mellon Trust Company, N.A., as successor trustee (“Bank of New York Mellon”), as supplemented by the Thirteenth Supplemental Indenture, dated as of February 17, 2012, among Sysco, Bank of New York Mellon and the subsidiary guarantors, and three related supplemental indentures (each applicable to one of the series of the notes) to be entered into among Sysco, U.S. Bank National Association, as trustee for the notes offered hereby (the “trustee”), and the subsidiary guarantors, creating and defining the terms of the notes and the guarantees and the forms of the notes attached thereto, to be dated the date of delivery of the notes (we refer to each supplemental indenture, together with the base indenture, as the “indenture”).
Certain capitalized terms used in the following description are defined in the indenture. As used in the following description, the terms “Sysco,” “we,” “us” and “our” refer to Sysco Corporation, and not any of its subsidiaries, unless the context requires otherwise.
We urge you to read the indenture (including definitions of terms used therein) because it, and not this description, defines your rights as a beneficial holder of the notes. You may request copies of the indenture from us at our address set forth above under “Prospectus Summary—The Company.”
Except as set forth under the caption “Material United States Federal Tax Considerations,” we make no representation as to the tax consequences of purchasing, holding, or selling the notes, or a beneficial interest in the notes, under federal, state, ornon-U.S. tax laws. Prospective holders of notes or beneficial interests in the notes are encouraged to consult with their own tax advisors with respect to such tax consequences.
General
The 5.650% Senior Notes due 2025, initially limited to $750,000,000 aggregate principal amount (the “2025 notes”), the 5.950% Senior Notes due 2030, initially limited to $1,250,000,000 aggregate principal amount (the “2030 notes”), the 6.600% Senior Notes due 2040, initially limited to $750,000,000 aggregate principal amount (the “2040 notes”), and the 6.600% Senior Notes due 2050, initially limited to $1,250,000,000 aggregate principal amount (the “2050 notes” and, together with the 2025 notes , the 2030 notes and the 2040 notes, the “notes”), will each constitute a series of senior debt securities issued under the indenture. The trustee will act as registrar, paying agent and authenticating agent and perform administrative duties for us, such as sending out interest payments and notices under the indenture.
The 2025 notes will bear interest at a fixed rate per year of 5.650%, starting on April 2, 2020 and ending on their maturity date, which is April 1, 2025. The 2030 notes will bear interest at a fixed rate per year of 5.950%, starting on April 2, 2020 and ending on their maturity date, which is April 1, 2030. The 2040 notes will bear interest at a fixed rate per year of 6.600%, starting on April 2, 2020 and ending on their maturity date, which is April 1, 2040. The 2050 notes will bear interest at a fixed rate per year of 6.600%, starting on April 2, 2020 and ending on their maturity date, which is April 1, 2050. Interest on the notes will be payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2020. All payments of interest on the notes will be made to the persons in whose names the notes are registered on the March 15 or September 15, whether or not a Business Day (as defined below), next preceding the applicable interest payment date.
Interest will be calculated on the basis of a360-day year comprising twelve30-day months. All dollar amounts resulting from this calculation will be rounded to the nearest cent.
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