SODEXO: Sodexo announces the reimbursement of its $1.6bn USPP debt to allow for greater independence and agility

Issy-les-Moulineaux, June 25, 2020 – Sodexo (NYSE Euronext Paris FR 0000121220-OTC: SDXAY).  Following recent discussions with USPP debt holders, Sodexo has decided to exercise its right to reimburse its USD 1.6bn outstanding debt to ensure independence of action. The different USPP notes had been put in place between 2011 and 2018 to finance acquisitions in the US.
With liquidity¹ of nearly 5 billion euro at the end of May, including the recent 1.5 billion euro bond issue in April, the Group has the resources to finance the reimbursement and maintain a strong financial structure.The Group intends to proceed with this reimbursement before year end closing. As per the conditions of the USPP debt agreements, the reimbursement includes a make-whole² of approximately €149m. By anticipating the reimbursement of this debt, future financial costs will be reduced by €198m, of which €52m in 2021. The average cost of debt going forward will fall to approximately 1.2%, versus 2.3% at the end of the 1^st half Fiscal 2020.As a result of this operation, Sodexo will have no covenants and will retain full agility to navigate in these uncertain times.Sodexo will continue to have an active policy of debt-financing going forward.About Sodexo
Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the global leader in services that improve Quality of Life, an essential factor in individual and organizational performance. Operating in 67 countries, Sodexo serves 100 million consumers each day through its unique combination of On-site Services, Benefits & Rewards Services and Personal and Home Services. Sodexo provides clients an integrated offering developed over more than 50 years of experience: from foodservices, reception, maintenance and cleaning, to facilities and equipment management; from services and programs fostering employees’ engagement to solutions that simplify and optimize their mobility and expenses management, to in-home assistance, child care centers and concierge services. Sodexo’s success and performance are founded on its independence, its sustainable business model and its ability to continuously develop and engage its 470,000 employees throughout the world.Sodexo is included in the CAC Next 20, ESG 80, FTSE 4 Good and DJSI indices.Contacts
¹  Liquidity as of May 31, 2020 includes Cash (including restricted cash) and unused credit facilities recently raised to 2 billion euro after the signing of additional bilateral on May 20, 2020.²  Net present value of flows – nominal value.AttachmentPR Sodexo USPP ENG June 25, 2020