Aramark to price $300 million eight-year notes in Thursday drive-by; whisper is 5¼%-5½%

By Paul A. Harris

Portland, Ore., Dec. 3 – Aramark plans to price a $300 million offering of eight-year senior notes (existing ratings B2/BB-) on Thursday, trailing a late-morning conference call with investors, according to a market source.

The Rule 144A and Regulation S with registration rights deal is in the market with initial yield guidance of 5¼% to 5½%, the source added.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are the joint bookrunners.

BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities LLC are the lead managers.

PNC Capital Markets, Rabo Securities, SMBC Nikko, TD Securities, Comerica and Santander are the co-managers.

The notes become callable after three years at par plus 75% of the coupon.

The issuing entity will be wholly owned subsidiary Aramark Services, Inc.

The Philadelphia-based customer service business across food, facilities and uniforms sectors plans to use the proceeds for general corporate purposes. Pending other uses of the proceeds Aramark may use them to temporarily pay down its revolver.

© 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.