Aramark Completes Debt Repricing
March 27 2024 - 9:00AM
Business Wire
Proactively reduced pricing on Term Loans due
2028 and 2030 by 50 basis points
Aramark (NYSE: ARMK), a global leader in food and facilities
management, announced today the successful completion of a
favorable repricing of the Company’s 2028 Term Loan B of $730
million and 2030 Term Loan B of $1.1 billion. The new applicable
rate for both Term Loans will be Secured Overnight Financing Rate
(“SOFR”) plus 200 basis points, which reduces pricing by 50 basis
points. Aramark’s proactive action is expected to result in an
interest expense savings of approximately $10 million annually.
There is no change to the Company’s outstanding debt, maturities,
or covenants from the repricing.
“We are very pleased with the strong market demand for our debt,
which provided an opportunity to further enhance our capital
structure,” said Jim Tarangelo, Aramark’s Chief Financial Officer.
“This transaction reflects the continued positive momentum in the
business, and we remain focused on achieving our leverage ratio1
target of approximately 3.5x by the end of this fiscal year. This
would represent Aramark’s lowest leverage ratio since 2017."
1Leverage ratio is defined as Net Debt to Covenant Adjusted
EBITDA
About Aramark Aramark (NYSE: ARMK) proudly serves the
world’s leading educational institutions, Fortune 500 companies,
world champion sports teams, prominent healthcare providers, iconic
destinations and cultural attractions, and numerous municipalities
in 15 countries around the world with food and facilities
management. Because of our hospitality culture, our employees
strive to do great things for each other, our partners, our
communities, and the planet. Aramark has been recognized on
FORTUNE’s list of “World’s Most Admired Companies,” Fair360’s “Top
50 Companies for Diversity” and “Top Companies for Supplier
Diversity,” Newsweek’s list of “America’s Most Responsible
Companies 2024,” the HRC’s “Best Places to Work for LGBTQ
Equality,” and earned a score of 100 on the Disability Equality
Index. Learn more at www.aramark.com and connect with us on
LinkedIn, Facebook, X, and Instagram.
Forward-Looking Statements Certain statements made in
this press release may constitute “forward-looking statements”
within the meaning of the federal securities laws. Forward looking
statements are based on management’s expectations, estimates,
projections, and assumptions. These statements are not guarantees
of future performance and involve certain risks and uncertainties,
which are difficult to predict. Therefore, actual future results
and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors. Additional
information regarding these factors is contained in the “Risk
Factors,” “Legal Proceedings” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” sections
and other sections of Aramark’s Annual Report on Form 10-K, filed
with the SEC on November 21, 2023, as such factors may be updated
from time to time in its other periodic filings with the SEC, which
are accessible on the SEC’s website at www.sec.gov and which may be
obtained by contacting Aramark’s investor relations department via
its website at www.aramark.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240327922551/en/
Inquiries Felise Glantz Kissell (215) 409-7287
Kissell-Felise@aramark.com
Gene Cleary (215) 409-7945 Cleary-Gene@aramark.com
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