Aramark sets Jan. 8 launch for $4.605 billion credit facility

By Sara Rosenberg

New York, Dec. 20 - Aramark Corp. firmed up timing on the retail launch of its proposed $4.605 billion senior secured credit facility with the scheduling of a bank meeting for Jan. 8, according to a market source.

Previously it was said that the deal would be early January business but a specific date had been unavailable.

A senior managing agent bank meeting for the facility already took place on Sept. 26.

Goldman Sachs and JPMorgan are joint bookrunners, joint lead arrangers and co-syndication agents on the deal.

The facility consists of a $600 million six-year revolver, a $250 million seven-year synthetic letter-of-credit facility and a $3.755 billion seven-year term loan, the source said.

According to various filings with the Securities and Exchange Commission, the revolver is expected at Libor plus 200 basis points if the deal is rated B1/B+ or better, otherwise it's Libor plus 225 bps, and the synthetic letter-of-credit facility and term loan are expected at Libor plus 225 bps if the deal is rated B1/B+ or better, otherwise they're anticipated at Libor plus 250 bps.

However, the market source emphasized that no official price talk on the transaction has been announced as of yet.

Proceeds from the facility, along with about $2.27 billion of bonds, will be used to help fund the buyout of Aramark by chairman and chief executive officer Joseph Neubauer and a group of investors.

Originally, the bond offering was expected to be sized at $2.47 billion but was scaled back as the sponsors decided to contribute an additional $200 million of equity.

Under the acquisition agreement, Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC will acquire Aramark in a transaction valued at $8.3 billion, including the assumption or repayment of about $2 billion of debt.

The transaction is expected to be completed at the end of January.

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

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