On June 24, 2014, Sodexo S.A. completed a bond issue structured in two tranches:
Accrued interest on this bond amounted to 2 million euros as of August 31, 2022.
None of the above-described bonds are subject to financial covenant.
On July 18, 2011, Sodexo S.A. contracted a multi-currency credit facility for a maximum of 600 million euros plus 800 million U.S. dollars, with an original maturity date of July 18, 2016. This facility has been amended on a number of occasions with the most recent amendment being in July 2019 with a new maturity date of July 2024, with two options to extend the maturity by one year each, up to July 2026. The first option to extend this facility was executed during Fiscal 2020 and the second was executed during Fiscal 2021. The facility maturity date is now July 2026. The maximum available limits under this facility now are 589 million euros plus 785 million U.S. dollars.
The most recent amendment also incorporates a sustainability clause that links the credit facility cost to Sodexo’s ability to comply with its public commitment to reduce its food waste by 50% by 2025.
Amounts drawn on this facility carry floating interest indexed on the LIBOR and EURIBOR rates. This credit facility is not subject to any covenant.
Concerning the benchmark rate reform, the Group is finalizing the discussions with their counterparts to negotiate the change of the rates, which include essentially this multilateral credit facility.
No amounts had been drawn down on the facility as of either August 31, 2022 nor as of August 31, 2021.
On December 18, 2019, the Group obtained two 150 million euros bilateral confirmed credit facility, both are due to expire in December 2023.
On February 13, 2020, the Group obtained a third 150 million euros bilateral confirmed credit facility expiring in February 2024.
On May 20, 2020, the Group obtained a further two bilateral facilities totaling 250 million euros. One facility is a 150 million euros facility and matured in May 2021 and the second facility is a 100 million euros facility that matured in September 2021 following the execution of the option to extend the facility for a further 8 months in January 2021.
No amounts had been drawn down on any of these facilities as of August 31, 2022.
Borrowings under the Sodexo S.A. and Sodexo Finance commercial paper programs are nil either as of August 31, 2022 nor of August 31, 2021.
In order to comply with the Group’s financing policy, substantially all borrowings are long term and at fixed interest rates.
As of August 31, 2022, 96% of the Group’s borrowings were at fixed rate. The average rate of interest as of the same date was 1.6%.
As of August 31, 2021, 95% of the Group’s borrowings were at fixed rate. The average rate of interest as of the same date was 1.6%.
The bond issues and borrowings from financial institutions described above include customary early redemption clauses. These clauses include cross-default and change-in-control clauses which apply to all of the borrowings.
