Aramark to 'move very quickly' with $6.25 billion of debt financing to fund merger

By Paul A. Harris

St. Louis, May 2 - Aramark Corp. chairman and chief executive officer Joseph Neubauer and a group of investors will "move very quickly" to put in place $6.25 million of debt financing backing the acquisition of the company, Aramark's board of directors said on Monday.

Neubauer together with funds managed by sponsors GS Capital Partners, J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC propose to acquire Aramark by paying $32 per share for all of the company's outstanding class A and class B common stock.

Goldman Sachs Credit Partners LP and J.P. Morgan Securities, Inc. were identified as the arrangers for the debt financing, which is to include senior and/or subordinated debt securities or, pending market conditions, an interim bridge facility, according to a document filed Monday with the Securities and Exchange Commission.

The company also stated that it may elect to put in place a senior credit facility and/or an accounts receivable securitization facility.

Following Monday's announcement, Moody's Investors Service placed the credit ratings of Aramark and its subsidiary, Aramark Services Inc., on review for possible downgrade.

Also following the announcement, Standard & Poor's placed its BBB- corporate credit ratings on Aramark and the subsidiary on CreditWatch with negative implications.

Likewise Fitch Ratings placed its BBB issuer default and senior unsecured debt ratings on Aramark and subsidiary Aramark Services Inc. on Rating Watch negative.

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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