Moody’s gives Ba1 to Aramark facilities

Moody's Investors Service said it rated Aramark Services, Inc.'s proposed senior secured bank credit facilities at Ba1.

On March 2, Aramark announced the first step in a multi-step refinancing process that the company expects will, once completed, reduce the proportion of senior secured to total debt in its capital structure to around 55% from about 70% today. Further details around its future financing plans were not disclosed, the agency said.

Net proceeds from the proposed senior secured multi-currency revolving credit facility due 2022, multi-currency term loan A due 2022, Japanese yen term loan C due 2022 and dollar-denominated term loan B due 2024 will be used to repay existing debt and add cash to the balance sheet.

Ratings on the existing senior secured revolving credit and term loan facilities will be withdrawn when they are repaid.

"If Aramark reduces the proportion of senior secured to total debt in its capital structure, consistent with the company's announced plans, Moody's would likely upgrade the senior unsecured ratings to Ba3 from B1," Moody's senior credit officer Edmond DeForest said in a news release.

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