Sysco Corporation (SYY) announced on Monday that it intends to sell $1 billion worth of its common stock.
The company plans to use the net proceeds to fund part of the purchase price for its pending acquisition of Jetro Restaurant Depot, and the offering is not dependent on the deal’s closing.
Sysco will grant the underwriters a 30‑day option to buy up to an additional $150 million of shares to cover any over‑allotments.
It also said that the previously signaled public offering of 12,345,679 shares will be priced at $81 per share.
The proceeds from this placement will likewise help finance a portion of the Jetro Restaurant Depot acquisition, with the offering remaining independent of the acquisition’s completion.
Goldman Sachs & Co. LLC and TD Securities (USA) LLC are serving as lead book‑running managers, while BofA Securities, J.P. Morgan Securities LLC and Wells Fargo Securities LLC act as additional book‑running managers for both transactions.
The 12.35‑million‑share offering is expected to close on September 16.
On Monday, Sysco’s shares ended the session at $83.54 on the NYSE, up 0.40 percent.
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