Aramark Announces Upsized Revolving Credit Facility and Closing of Debt Refinancing

Rhea-AI Summary

Aramark (NYSE:ARMK) announced a successful refinancing of its debt, including a 3-year extension on its Revolving Credit Facility and Term Loan A, now maturing in 2026. The Revolving Credit Facility has been upsized to $1.2 billion, increasing cash availability by over $200 million. Additionally, Aramark has refinanced its $833 million Term Loan B, extending its maturity to 2028. These changes are expected to enhance financial flexibility and support growth opportunities, as stated by CFO Tom Ondrof.

Positive

• Successful 3-year extension of Revolving Credit Facility and Term Loan A to 2026.
• Upsizing of Revolving Credit Facility to $1.2 billion, increasing cash availability by over $200 million.
• Refinanced $833 million Term Loan B, extending maturity to 2028.
• Net leverage neutral transactions, maintaining comparable fixed-to-floating debt levels.

Negative

• None.

Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced today that the Company finalized a 3-year extension on substantially all of its Revolving Credit Facility and Term Loan A to 2026. This action included an upsizing of Aramark’s Revolving Credit Facility to approximately $1.2 billion that increases the Company’s cash availability by over $200 million. In addition, Aramark closed its previously announced $833 million refinancing of the Company’s 2024 Term Loan B that extends the maturity to 2028.

The transactions are net leverage neutral, while maintaining comparable fixed-to-floating debt levels.

“With a favorable outcome of the debt refinancing and upsized revolving credit facility, we have enhanced our financial flexibility and believe we are well-positioned to capitalize on the extensive growth opportunities ahead,” stated Tom Ondrof, Aramark’s Chief Financial Officer.

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 19 countries around the world. We deliver innovative experiences and services in food, facilities management and uniforms to millions of people every day. We strive to create a better world by making a positive impact on people and the planet, including commitments to engage our employees; empower healthy consumers; build local communities; source ethically, inclusively and responsibly; operate efficiently and reduce waste. Aramark is recognized as a Best Place to Work by the Human Rights Campaign (LGBTQ+), DiversityInc, Equal Employment Publications and the Disability Equality Index. Learn more at www.aramark.com or connect with us on Facebook and Twitter.

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 24, 2020, 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.

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FAQ

What recent financial moves has Aramark made?

Aramark announced a 3-year extension on its Revolving Credit Facility and Term Loan A, along with refinancing its Term Loan B, enhancing financial flexibility.

How much was Aramark's Revolving Credit Facility increased?

Aramark's Revolving Credit Facility was upsized to $1.2 billion, increasing cash availability by over $200 million.

When does Aramark's Term Loan A mature?

Aramark's Term Loan A is now set to mature in 2026 following its recent extension.

What is the new maturity date for Aramark's Term Loan B?

The maturity date for Aramark's Term Loan B has been extended to 2028.

What impact do these financial moves have on Aramark's stock?

These refinancing efforts are expected to enhance Aramark's financial flexibility and position the company for growth, which could positively influence its stock performance.