Aramark to price $1 billion two-part notes offering on Monday; proceeds for debt refinancing

By Paul A. Harris

Portland, Ore., May 16 – Aramark Services, Inc. plans to price $1 billion of senior notes (expected ratings B2/BB-) in two evenly sized tranches Monday afternoon trailing a late-morning conference call with investors, according to a syndicate source.

The Philadelphia-based company plans to do an add-on to its 5 1/8% senior notes due 2024. Those notes become callable after Jan. 15, 2019 at 103.863. The original $400 million issue priced at par on Dec. 3, 2015.

Aramark also is offering new 10-year senior notes, which become callable after five years at par plus 50% of the coupon.

Early guidance has the add-on coming at 103.5, while the new 10-year notes are expected to come together in the high 4% to 5% yield range.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the joint bookrunners.

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

Proceeds will be used to redeem $771.2 million of the company’s $1 billion of 5¾% senior notes due 2020 and to repay about $192.8 million of term loans under the senior secured credit facilities.

Aramark is a customer service business across food, facilities and uniforms sectors.

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