Aramark sets Tuesday managing agent meeting for $4.605 billion facility

By Sara Rosenberg

New York, Sept. 25 - Aramark Corp. has scheduled a senior managing agent bank meeting for Tuesday to launch its proposed $4.605 billion senior secured credit facility, according to a market source.

Goldman Sachs and JPMorgan are joint bookrunners, joint lead arrangers and co-syndication agents on the deal.

The facility consists of an up to $600 million revolver, an up to $250 million synthetic letter-of-credit facility and an up to $3.755 billion term loan.

Proceeds from the facility, along with $2.47 billion of notes, will be used to help fund the buyout of Aramark by chairman and chief executive officer Joseph Neubauer and a group of investors.

The notes will be comprised of $770 million of senior subordinated notes and up to $1.7 billion senior cash pay notes and/or senior PIK option notes, with 50% of the principal amount of the up to $1.7 billion having to come in the form of PIK option notes.

As a backup for the notes, the company has a commitment for a $770 million senior subordinated bridge facility and a commitment for a $1.7 billion senior bridge facility.

Under the acquisition agreement, Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC will acquire Aramark in a transaction valued at $8.3 billion, including the assumption or repayment of about $2 billion of debt.

The transaction is expected to be completed by late 2006 or early 2007, subject to receipt of stockholder approval and regulatory approvals, as well as satisfaction of other customary closing conditions.

Aramark is a Philadelphia-based professional services company that provides food, hospitality, facility management services as well as uniform and work apparel.

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