Sysco Corporation (SYY, Financial), a global leader in foodservice distribution, has announced a significant amendment to its existing Credit Agreement, originally dated April 29, 2022. The amendment, known as Amendment No. 2, was executed on June 4, 2025, and involves several key financial entities, including Sysco Global Holdings B.V. as the new borrower, Sysco Canada, Inc., Sysco EU II S.À R.L., and Bank of America, N.A., serving as the Administrative Agent.
The primary objective of Amendment No. 2 is to incorporate Sysco Global Holdings B.V. as a "Subsidiary Borrower" under the Amended Credit Agreement. This strategic move allows the new borrower to request and accept credit extensions, thereby assuming the obligations associated with a subsidiary borrower. This development is expected to enhance Sysco's financial flexibility and support its global operations.
Sysco Corporation has clarified that there are no material relationships between itself or its affiliates and the other parties involved in Amendment No. 2, aside from standard commercial banking, investment banking, underwriting, trust, and financial advisory services. These services are provided by certain lenders under the Amended Credit Agreement and their affiliates, for which they receive customary fees and expenses.
This amendment reflects Sysco's ongoing commitment to optimizing its financial structure and ensuring robust support for its expansive operations across various regions. Investors and stakeholders will be keenly observing how this enhanced credit facility impacts Sysco's strategic initiatives and growth trajectory in the coming quarters.
Should you invest in Sysco Corp (SYY, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Sysco Corp (SYY) stock research here.
