Aramark Launches Process to Refinance 2024 Debt Maturity

Rhea-AI Summary

Aramark (NYSE:ARMK) announced plans to refinance its $833 million 2024 Term Loan B credit facility, extending the maturity to 2028 and maintaining a net leverage neutral position. The company also aims to extend its Revolving Credit Facility and Term Loan A to 2026, enhancing its financial flexibility. CFO Tom Ondrof emphasized the proactive approach amidst favorable market conditions. These refinancing efforts are expected to be completed by the end of the fiscal quarter, aligning with Aramark's strategy for long-term growth.

Positive

• Refinancing the 2024 Term Loan B to extend maturity to 2028 promotes financial stability.
• Extension of Revolving Credit Facility and Term Loan A to 2026 enhances financial flexibility.
• Proactive measures taken amidst favorable market conditions indicate a strong management strategy.

Negative

• None.

Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced today the launch of a process to refinance the Company’s 2024 Term Loan B credit facility of $833 million that would proactively extend the maturity to 2028. The transaction is intended to be net leverage neutral, while maintaining comparable fixed-to-floating debt levels.

Concurrently, Aramark initiated a process for a 3-year extension of both its Revolving Credit Facility and Term Loan A to 2026, further strengthening the Company’s financial flexibility. These transactions are anticipated to be completed before the end of the current fiscal quarter.

“We are strategically taking action in a favorable debt market environment to further optimize our balance sheet,” said Tom Ondrof, Aramark’s Chief Financial Officer. “We are encouraged by the increased levels of activity across the portfolio and remain focused on managing the business with a growth-oriented, long-term mindset.”

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, including Aramark’s expectations for refinancing its credit facilities, 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 is Aramark's plan for its $833 million Term Loan B?

Aramark plans to refinance its $833 million Term Loan B, extending the maturity to 2028.

When will Aramark's refinancing transactions be completed?

The refinancing transactions are anticipated to be completed by the end of the current fiscal quarter.

How will the refinancing affect Aramark's financial flexibility?

The refinancing and extension of credit facilities will enhance Aramark's financial flexibility.

What are the benefits of Aramark's refinancing strategy?

The refinancing promotes financial stability and aligns with a growth-oriented, long-term management strategy.

Who is the CFO of Aramark, and what did he say about refinancing?

Tom Ondrof, Aramark's CFO, stated that the company is strategically optimizing its balance sheet in a favorable debt market.