Aramark Services to launch $1.15 billion term loan on Thursday

By Sara Rosenberg

New York, Nov. 29 – Aramark Services will hold a lender call on Thursday to launch a $1.15 billion term loan that is talked at Libor plus 200 basis points to 225 bps with a 0% Libor floor and an original issue discount of 99.75, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

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

Commitments are due on Dec. 7, the source said.

Proceeds will be used to help fund the acquisition of Avendra LLC for $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits.

Closing on the transaction is expected by year-end, subject to customary conditions and regulatory approvals.

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

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