...September 27, 2024 NEW YORK (S&P Global Ratings) Sept. 27, 2024--S&P Global Ratings today assigned its '##' issue-level rating and '4' recovery rating to US Foods Inc.'s proposed $500 million senior unsecured notes due 2033. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 40%) recovery for noteholders in the event of a payment default. The company intends to use the proceeds from the senior unsecured notes and its proposed $725 million term loan (rated '###-') to refinance its existing $1.1 billion term loan B due 2026. Following the transaction, US Foods' outstanding secured debt will decrease roughly 25% to $1.3 billion; the company's $2.3 billion asset-based lending (ABL) facility remains undrawn. As a result, we revised our recovery rating on the company's existing senior unsecured notes to '4' (30%-50%; rounded estimate: 40%) from '5' (10%-30%; rounded estimate: 25%) and raised the issue-level rating to '##' from '##-'. We will withdraw our...
