S&P affirms Aramark

Standard & Poor's said it affirmed its loan and recovery ratings on the proposed senior secured credit facilities of Aramark (B+/negative), following the announcement that the company will increase the term loan by almost $500 million.

With the add-on, the total amount of the term loan is now $4.15 billion, the agency said, adding that the loan rating was affirmed at B+, the same level as the corporate credit rating on Aramark, and the recovery rating was affirmed at 2, S&P said.

The company will also increase its senior debt offering by about $80 million in lieu of the prior expectation of issuing $570 million of subordinated debt, according to the agency.

Net proceeds from the company's proposed enlarged term loan and senior unsecured debt offering, together with about $2.1 billion of equity, will be used to finance the acquisition of Aramark by a group of investors led by its chairman and CEO, Joseph Neubauer, which includes the repayment of about $1.7 billion of Aramark's outstanding debt, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.