Banks Line Up $38 Billion Debt for Sysco, McCormick Food Deals

Wall Street banks have provided $38 billion of short-term loans to fund acquisitions by McCormick & Co. and Sysco Corp., adding to a growing pipeline of M&A financings that will eventually hit the high-grade bond market.

McCormick has obtained $15.7 billion of committed bridge financing to help fund its planned $44.8 billion combination with most of Unilever Plc’s food business, the spice maker said Tuesday. Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley have offered the backing.

The deal came a day after restaurant supplier Sysco agreed to acquire a food wholesaler, with a large ...