Aramark Completes Debt Repricing

Published

Proactively reduced pricing on Term Loans due 2028 and 2030 by 50 basis points

PHILADELPHIA--(BUSINESS WIRE)-- Aramark (NYSE: ARMK), a global leader in food and facilities management, announced today the successful completion of a favorable repricing of the Company’s 2028 Term Loan B of $730 million and 2030 Term Loan B of $1.1 billion. The new applicable rate for both Term Loans will be Secured Overnight Financing Rate (“SOFR”) plus 200 basis points, which reduces pricing by 50 basis points. Aramark’s proactive action is expected to result in an interest expense savings of approximately $10 million annually. There is no change to the Company’s outstanding debt, maturities, or covenants from the repricing.

“We are very pleased with the strong market demand for our debt, which provided an opportunity to further enhance our capital structure,” said Jim Tarangelo, Aramark’s Chief Financial Officer. “This transaction reflects the continued positive momentum in the business, and we remain focused on achieving our leverage ratio1 target of approximately 3.5x by the end of this fiscal year. This would represent Aramark’s lowest leverage ratio since 2017."

1Leverage ratio is defined as Net Debt to Covenant Adjusted EBITDA

About Aramark Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 15 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Aramark has been recognized on FORTUNE’s list of “World’s Most Admired Companies,” Fair360’s “Top 50 Companies for Diversity” and “Top Companies for Supplier Diversity,” Newsweek’s list of “America’s Most Responsible Companies 2024,” the HRC’s “Best Places to Work for LGBTQ Equality,” and earned a score of 100 on the Disability Equality Index. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

Forward-Looking Statements Certain statements made in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward looking statements are based on management’s expectations, estimates, projections, and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and other sections of Aramark’s Annual Report on Form 10-K, filed with the SEC on November 21, 2023, as such factors may be updated from time to time in its other periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and which may be obtained by contacting Aramark’s investor relations department via its website at www.aramark.com.

Inquiries Felise Glantz Kissell (215) 409-7287 Kissell-Felise@aramark.com

Gene Cleary (215) 409-7945 Cleary-Gene@aramark.com

Source: Aramark

In This Story

ARMK