Aramark increases senior secured term loan size to $1.4 billion

By Sara Rosenberg

New York, Feb. 21 - Aramark Corp. lifted its senior secured term loan (B1/BB-) due August 2019 to $1.4 billion from $1 billion, according to a market source.

Pricing on the loan was unchanged at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 991/2, and there is still 101 soft call protection for six months.

In addition, the secured leverage test for spin off of "designated business" was revised to 4.9 times from 4.75 times, the source said.

Recommitments were due by 3 p.m. ET on Thursday.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays, BofA Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal.

As a result of the upsizing, the company will repurchase all of OpCo's 8½% senior notes due February 2015, instead of just some, and will retire a portion of its floating-rate notes due February 2015.

With the term loan, the company is looking to amend its $550 million revolver to extend the maturity, modify the maximum senior secured leverage ratio and provide additional flexibility with respect to restricted payments.

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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