Philadelphia-headquartered Aramark announced today that it is issuing notice to optionally redeem in full the $500 million outstanding principal amount of its 4.75% senior notes due 2026, effective June 2, 2021.
Aramark plans to fund the repayment, together with related premium and accrued interest, with available cash on hand. The debt repayment will result in annual interest expense savings of nearly $25 million.
“We remain extremely encouraged by our strong cash flow and liquidity position that provides a platform to execute our capital allocation priorities, including this debt repayment, as well as our refinancing in early April and acquisition announced just last week,” stated Aramark chief financial officer Tom Ondrof.
Aramark provides foodservice, vending, micro market, facility management and uniform services in 19 countries. It is scheduled to host its fiscal second-quarter earnings call on May 11 at 8:30 a.m. ET.
