Aramark to launch $3.55 billion in U.S. term loans on Monday

By Sara Rosenberg

New York, Feb. 7 - Aramark Corp. is set to hold a call on Monday to launch $3.55 billion of U.S term loans as well as Canadian, pound and euro term debt, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

The deal includes a $1.4 billion term loan E due September 2019, a $2.15 billion seven-year term loan F, a C$95 million seven-year term loan, a £115 million seven-year term loan and a €110 million seven-year term loan, the source said.

Price talk on the term loan E is Libor plus 225 basis points with a 0.75% Libor floor and a par offer price, talk on the term loan F is Libor plus 250 bps with a 0.75% Libor floor and an original issue discount of 993/4, talk on the Canadian term loan is BA plus 275 bps to 300 bps with a 0.75% floor and a discount of 993/4, talk on the pound term loan is Libor plus 325 bps to 350 bps with a 0.75% Libor floor and a discount of 991/2, and talk on the euro term loan is Euribor plus 275 bps to 300 bps with a 0.75% floor and a discount of 991/2, the source continued.

All of the term loans have 101 soft call protection for six months.

Proceeds will be used to refinance existing debt.

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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