Aramark seeks U.S. revolver maturity extension and size expansion

By Sara Rosenberg

New York, April 4 - Aramark Corp. is looking to extend its U.S. revolving credit facility by two years to January 2015 and to increase the size to $500 million from $435 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the extended revolver would be Libor plus 325 basis points with a 50 bps unused fee.

The extended revolver will include a springing maturity to Oct. 26, 2013 if non-extended term loans in excess of $250 million remain outstanding on that date. In addition, the revolver maturity would accelerate to Oct. 31, 2014 if any of the company's senior fixed-rate notes due 2015 or senior floating-rate notes due 2015 remain outstanding on that date.

Any commitments from existing lenders in the dollar revolver that are not extended would be terminated.

Aramark's other revolvers, which total $165 million and are available in both dollars and other foreign currencies, would not be extended.

The company plans to use $132.7 million in borrowings under the U.S. revolver, along with proceeds from a new $600 million of senior notes offered, to make a $711.7 million distribution to stockholders and to pay fees and expenses related to the extension.

The notes offering is not conditioned on the extension of the revolver.

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

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