Aramark announces repayment of $ 500 million debt
PHILADELPHIA CREAM – (COMMERCIAL THREAD) – Aramark (NYSE: ARMK), a global leader in food, facilities management and uniforms, today announced that the company is issuing an optional redemption notice of all outstanding principal of 500 million of its 4.75% senior bonds due 2026, effective June 2, 2021. The Company expects to fund the repayment, along with related premiums and accrued interest, with available cash. Paying off the debt will result in annual interest savings of nearly $ 25 million.
“We remain extremely encouraged by our strong cash flow and liquidity position which provides a platform to execute our capital allocation priorities, including this debt repayment as well as our refinancing in early April and the announced acquisition. last week, ”said Tom Ondrof, head of Aramark. Financial director. “These actions collectively reduce interest costs and further enhance our flexibility to drive our continued pursuit of growth opportunities.”
As previously announced, Aramark is scheduled to host its fiscal second quarter earnings conference call on May 11, 2021 at 8:30 a.m. ET.
Aramark (NYSE: ARMK) is proud to serve the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, leading healthcare providers, iconic destinations and cultural attractions, as well as many municipalities in 19 countries around the world with uniform food, facilities and services. Because our culture is rooted in service, our employees strive to do great things for each other, our partners, our communities and our planet. Aramark was named to DiversityInc’s “50 Best Companies for Diversity” list, Forbes list of “America’s Best Diversity Employers”, Human Rights Campaign’s “Best Place to Work for LGBTQ Equality” Foundation and obtained a score of 100% on the Disability Equality Index. . Learn more about www.aramark.com and connect with us on Facebook, Twitter and LinkedIn.
Certain statements made in this press release may constitute “forward-looking statements” within the meaning of 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 expected in forward-looking statements due to various factors. Additional information regarding these factors is contained in the sections “Risk Factors”, “Legal Proceedings” and “Management’s Discussion and Analysis of the Financial Condition and Results of Operations” and other sections of the annual report. Aramark on Form 10-K, filed with the SEC. on November 24, 2020, as these factors may be updated from time to time in its other periodic filings with the SEC, which can be accessed on the SEC’s website at www.sec.gov and which can be obtained by contacting Aramark’s Investor Relations department through their website at www.aramark.com.