Performance Food Group Company (NYSE: PFGC) has announced that its wholly‑owned subsidiary, Performance Food Group, Inc., will issue $1.06 billion of senior notes due 2034. The private offering will be made to qualified institutional buyers and non‑U.S. investors and is guaranteed by PFGC, Inc. and its material wholly‑owned domestic restricted subsidiaries.
The proceeds will be used to redeem all outstanding 5.500% senior notes due 2027 and to refinance the company’s existing debt. By replacing the 2027 notes with 2034 notes, PFGC extends its debt maturity profile, reducing near‑term refinancing risk and providing greater financial flexibility to support future acquisitions and integration projects.
PFGC’s balance sheet carries approximately $8.3 billion of debt and a debt‑to‑equity ratio of 1.82. The refinancing aligns with the company’s strategy of using debt to fund growth, including recent acquisitions such as Cheney Brothers and José Santiago, Inc. Extending the maturity to 2034 gives the firm a longer horizon to deploy capital toward expansion while maintaining a strong capital structure.
CFO Patrick Hatcher noted that the refinancing supports the company’s platform‑building and e‑commerce initiatives, while CEO George Holm emphasized that the move underpins a long‑term growth strategy. The company’s leadership views the new notes as a tool to sustain momentum in its acquisition‑driven expansion.
If the coupon on the new notes is lower than the 5.500% rate of the notes being redeemed, the company will achieve a reduction in overall interest expense. The extended maturity also cushions PFGC against short‑term market volatility and positions it to capitalize on future opportunities in the foodservice distribution sector.
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