Vestis gets $1.8 billion credit facilities with spinoff from Aramark

By Sara Rosenberg

New York, Oct. 2 – Vestis Corp. closed on $1.8 billion of senior secured credit facilities, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan Chase Bank, PNC Capital Markets, Wells Fargo Securities LLC, Truist Securities, Goldman Sachs Bank USA and TD Bank acted as the joint lead arrangers, bookrunners and syndication agents on the deal. RBC Capital Markets, Capital One and Bank of Nova Scotia acted as documentation agents. JPMorgan is the administrative agent.

The facilities consist of a $300 million revolver due Sept. 29, 2028, an $800 million term loan A-1 due Sept. 29, 2025 and a $700 million term loan A-2 due Sept. 29, 2028, all priced initially at SOFR plus 225 basis points. The spread will fluctuate based on the company’s total net leverage ratio.

The term loan A-2 has a springing maturity of four months prior to the term loan A-1 maturity if any portion of the term loan A-1 remains outstanding as of such date and has, as of such date, a scheduled maturity date prior to Sept. 29, 2028.

Proceeds were used to help fund a cash transfer of about $1.457 billion to Aramark in connection with the spinoff of Vestis from Aramark.

Vestis is a Roswell, Ga.-based provider of full-service rental programs with programs focused on uniforms, floor mats, towels, linens, managed restroom and first aid services.

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