Aramark to start roadshow Monday for $2.27 billion three-part note offer

By Paul A. Harris

St. Louis, Jan. 4 - Aramark Corp. will start a roadshow on Monday for its $2.27 billion three-part offering of notes, according to a market source.

The Philadelphia-based professional food, hospitality and facility management services company plans to sell $1.70 billion of eight-year senior notes in two tranches: floating-rate notes that are non-callable for two years and fixed-rate notes that are non-callable for four years.

Tranche sizes remain to be determined.

Aramark also plans to sell $570 million of 10-year senior subordinated notes, which will come with five years of call protection.

The notes are expected to price on Jan. 17.

JP Morgan and Goldman Sachs & Co. are joint bookrunners. Citigroup, Barclays Capital and Wachovia Securities are joint lead managers. Calyon Securities, GE Capital, HVB, Mitsubishi, NatCity Investments PNC Capital Markets, Rabo Bank and The Royal Bank of Scotland are co-managers.

The company will also put in place $4.605 billion of credit facilities.

Proceeds, in addition to $200 million of equity, will be used to fund the approximately $8.3 billion leveraged buyout of the company by chairman and chief executive officer Joseph Neubauer together with funds managed by sponsors Thomas H. Lee Partners LP, Warburg Pincus LLC, JPMorgan Partners, GS Capital Partners and CCMP Capital Advisors.

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