Aramark finalizes $1.75 billion term loan B at Libor plus 200 bps

By Sara Rosenberg

New York, March 9 – Aramark Corp. set pricing on its $1.75 billion term loan B (Ba1/BBB-) due 2024 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and added a step-down to Libor plus 175 bps when total leverage is less than 3 times, according to a market source.

In addition, the issue price on the term loan was tightened to par from 99.75, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

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

Recommitments were due at noon ET on Thursday, the source added.

Proceeds will be used to help redeem the company’s $228.8 million notes due 2020, to refinance existing term loans and to pay fees and expenses.

Other funds for the transaction will come from $600 million in senior unsecured notes.

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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