On April 27, 2020, Sodexo S.A. issued a bond structured in two tranches:
Accrued interest on these bonds amounted to 5 million euros as of August 31, 2023.
On June 26, 2019, Sodexo S.A. issued bonds for 250 million British pounds Sterling redeemable in June 2028 and bearing interest at an annual rate of 1.75%, with interest payable annually on June 26. Accrued interest on this bond amounted to 1 million euros as of August 31, 2023.
On May 22, 2018, Sodexo S.A. issued bonds for 300 million euros redeemable in May 2025 and bearing interest at an annual rate of 1.125%, with interest payable annually on May 22. Accrued interest on this bond amounted to 1 million euros as of August 31, 2023.
On October 14, 2016 Sodexo S.A. issued bonds for 600 million euros redeemable in April 2027 and bearing interest at an annual rate of 0.75%, with interest payable annually on April 14. On August 1, 2017, the Company increased this issue with an additional 200 million euros of bonds. Accrued interest on these bonds amounted to 2 million euros as of August 31, 2023.
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, 2023.
None of the above-described bonds are subject to financial covenant.
In July 2023 the Company launched a consent solicitation process relating to its 4.4 billion euros of outstanding EUR and GBP bonds, in order to seek certain approvals and waivers to proceed with the proposed spin-off of the Benefits & Rewards Services activity (Pluxee). The proposal was approved in relation to 7 out of the 8 bonds series. The consent solicitation in relation to the 300 million euros 1.125% bonds due May 22, 2025 (the “May 2025 Bonds”) was terminated and, on October 25, 2023, the board decided to redeem the May 2025 Bonds and publish the make-whole redemption notice on October 26, 2023. Sodexo will redeem the total aggregate principal amount of the May 2025 Bonds outstanding on November 10, 2023.
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 SOFR and EURIBOR rates. This credit facility is not subject to any covenant.
No amounts had been drawn down on the facility as of either August 31, 2023, nor as of August 31, 2022.
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.
No amounts had been drawn down on any of these facilities as of August 31, 2023.
Borrowings under the Sodexo S.A. and Sodexo Finance commercial paper programs are nil either as of August 31, 2023 nor of August 31, 2022.
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, 2023, 95% of the Group’s borrowings were at a fixed rate. The average rate of interest as of the same date was 1.7%.
As of August 31, 2022, 96% of the Group’s borrowings were at a 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.
