Sodexo Inc. Reports Expiration and Results of Cash Tender Offer for Outstanding Notes

Sodexo Inc. Announces Expiration and Results of Cash Tender Offer

Sodexo Inc., the prominent global food services and facilities management company, has declared the conclusion and outcomes of its previously communicated cash tender offer for certain of its outstanding USD notes. This announcement relates specifically to Sodexo’s 1.634% Notes due 2026, which are guaranteed by Sodexo S.A.

Details of the Cash Tender Offer

The offer, referred to as the “Offer,” was set to expire on May 22, 2025, at 5:00 PM New York City time. According to the report from Sodexo, at the expiration deadline, a total of $172,290,000 of its existing notes was validly tendered and not withdrawn from the offer. This principal amount is part of an aggregate that initially totaled $500,000,000.

The company intends to acquire all notes that were tendered and validly delivered by the specified deadline. The settlement date for the purchase of these securities is anticipated to be on May 28, 2025. Under the terms of the offer, holders of these notes will receive a purchase price of $975.90 for each $1,000 of principal amount they tendered and accepted as part of this transaction. This payment will occur in addition to accrued and unpaid interest up to, but not including, the settlement date.

Offer's Context and Future Plans

This move comes on the heels of Sodexo’s previous announcements regarding their intention to issue new USD-denominated senior guaranteed debt securities, commonly referred to as the “New Notes.” The company’s acceptance of the tendered notes is contingent upon successful completion of the offering of these new securities or alternative offerings of guaranteed senior debt securities.

This strategy is part of Sodexo's broader financial management efforts to streamline their capital structure and optimize financing conditions. By managing their outstanding debt effectively, the company aims to enhance operational flexibility and align funding with current market conditions.

Regulatory Requirements and Next Steps

Sodexo emphasizes that the distribution of this announcement may be subject to legal restrictions in certain jurisdictions, and any individuals who come across this announcement are encouraged to familiarize themselves with and adhere to those restrictions. The Offeror, alongside various financial institutions acting as Dealer Managers, has provided various channels for inquiries regarding the tender offer to ensure clarity and assist participants.

Potential investors or stakeholders can direct their questions to designated representatives of the Dealer Managers and can find further information and documentation on the official designated website.

In summary, Sodexo Inc.'s latest tender offer reflects significant corporate finance activity aimed at optimizing capital structure while paving the way for new financial instruments. This ongoing effort underscores the company’s commitment to maintaining robust financial health and adaptability in a continually evolving marketplace.