US Foods Announces Plans to Seek to Extend Certain Loan Maturities to 2017

ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods today announced that it intends to meet with banks to seek to extend by three years the maturity of certain term loans coming due in 2014.

The Company intends to solicit consents of the lenders holding term loans maturing July 3, 2014, under its $2.04 billion senior secured term loan facility originally entered into in 2007 to extend the maturity date of such loans to March 31, 2017, in an amount that the Company currently anticipates to be approximately $350 million (but may, at the Company’s option, be more or less than $350 million). To the extent such consents are not received, the Company will seek to replace non-consenting lenders with new lenders that will agree to the extended maturity date. In addition, the Company currently anticipates funding a concurrent repayment of an additional $350 million of such term loans with additional senior indebtedness.

Currently, approximately $699 million of the term loans under the 2007 term loan facility mature on July 3, 2014, with the remaining $1.234 billion of such term loans (the “Existing Extended Loans”) maturing on March 31, 2017. After giving effect to the anticipated extension and repayment, all of the term loans outstanding under the 2007 term loan facility—approximately $1.584 billion in aggregate principal amount—will mature on March 31, 2017.

The Company expects that the interest rate margins and other terms applicable to term loans extended pursuant to the proposed amendment will be the same as those applicable to the Existing Extended Loans, and thus intends to reopen the Existing Extended Loans by way of this extension. The Company can provide no assurance that the requisite consents will be received, nor as to the ultimate terms of the 2007 Term Loan Facility Amendment, nor as to the ability of the Company to incur additional senior indebtedness on terms acceptable to the Company and the amount, if any, of 2007 Term Loan Facility borrowings that it may repay.

About US Foods

With more than $20 billion in annual revenue, US Foods is the 10th largest private company in America. As one of America’s great food companies and leading distributors, US Foods is Keeping Kitchens Cooking^® and making life easier for more than 250,000 customers, including independent and multi-unit restaurants, healthcare and hospitality entities, government and educational institutions. The company offers more than 350,000 products, including high-quality, exclusive brands such as the innovative Chef’s Line^®, a time-saving, chef-inspired line of scratch-quality products, and Rykoff Sexton^®, a premium line of specialty ingredients sourced from around the world. The company proudly employs approximately 25,000 people in more than 60 locations nationwide. US Foods is headquartered in Rosemont, Ill., and jointly owned by funds managed by Clayton, Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. Discover more at www.usfoods.com.

This announcement includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this announcement is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this announcement. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. A number of important factors could cause actual events to differ materially from those contained in or implied by the forward-looking statements. Any forward-looking information presented herein is made only as of the date of this announcement, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. This announcement is intended to be a public announcement described in U.S. Treasury Regulations Section 1.1275-2(k)(2)(iv).