Aramark to price $1.15 billion 10-year notes in Wednesday drive-by; guidance 5%-5¼%

By Paul A. Harris

Portland, Ore., Jan. 10 – Aramark Services, Inc. plans to price a $1.15 billion offering of 10-year senior notes (existing ratings Ba3/BB) in a quick-to-market Wednesday trade following a mid-morning conference call with investors, according to market sources.

Initial guidance has the deal coming to yield 5% to 5¼%, a trader said.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S for life offering. J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, BofA Merrill Lynch, Wells Fargo Securities LLC, TD Securities and Capital One are the joint bookrunners.

PNC Capital Markets, SMBC Nikko, Rabo Securities, Scotia Capital, U.S. Bancorp Investments Inc., Commerzbank and SunTrust Robinson Humphrey Inc. are the co-managers.

The notes become callable after five years at par plus 50% of the coupon.

Proceeds, together with cash on hand, will be used to fund the acquisition of AmeriPride Services and to repay $150 million of the Amendment No. 2 revolving credit facility.

The deal features a special mandatory redemption if the AmeriPride acquisition is not completed by April 30, 2018.

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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