Narrative
Full Description
Project narrative
On March 28, 2017, financial close was reached on a deal in which a syndicate of 43 banks—including Industrial and Commercial Bank of China (ICBC)—entered into a $3.75 billion USD syndicated loan agreement with Aramark Services, Inc., a Delaware-based multinational company specializing in food service, facilities, and uniform services. The loan was structured into multiple tranches, including a $1.75 billion USD U.S. Term B Loan, a $650 million USD U.S. Term A Loan, a $1 billion USD Revolving Credit Facility, a C$133.4 million CAD Canadian Term A Loan, and a ¥11.107 billion JPY Yen Term C Loan. The maturity of the loan is five years, and the interest rate is LIBOR plus an applicable margin. The proceeds of the loan were used by Aramark Services, Inc. to redeem its 2020 Senior Notes, repay all outstanding indebtedness under its previous credit agreement, and cover fees and expenses related to the refinancing transaction. While ICBC contributed $45 million USD to the revolving credit and US Term A tranches (Record ID#107243), the following lenders also participated: JPMorgan Chase Bank, Goldman Sachs Lending Partners, Bank of America, Credit Suisse, Wells Fargo, Barclays Bank, PNC Bank, The Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Bank, Morgan Stanley Senior Funding, Capital One, Cooperative Rabobank, TD Bank, The Bank of Nova Scotia, U.S. Bank, Comerica Bank, Sumitomo Mitsui Banking Corporation, SunTrust Bank, Citizens Bank of Pennsylvania, DNB Capital, People’s United Bank, The Governor & Company of the Bank of Ireland, KBC Bank, State Bank of India, Crédit Industriel et Commercial, Chang Hwa Commercial Bank, City National Bank of Florida, Eastern Bank, First Midwest Bank, First National Bank of Pennsylvania, Hua Nan Commercial Bank, ICICI Bank Canada, Laurentian Bank, Siemens Financial Services, Taiwan Business Bank, Taiwan Cooperative Bank, The Bank of East Asia, American Savings Bank, Cathay Bank, Liberty Bank, Mega International Commercial Bank, TriState Capital Bank, Xenith Bank, and Monroe Bank & Trust. Over the year, the company made many amendments with the banks. On October 1, 2018, the company and its subsidiaries entered into 7th Amendment in which they restated the agreement. While Industrial and Commercial Bank of China (ICBC) contributed $25.71 million USD to this loan (Record ID#107244), the following lenders also participated: JPMorgan Chase Bank, Bank of America, Bank of America Canada Branch, Bank of America Merrill Lynch International Limited, PNC Bank, PNC Bank Canada Branch, Wells Fargo Bank, Goldman Sachs Lending Partners, Credit Suisse Cayman Islands Branch, Barclays Bank, MUFG Bank, MUFG Bank Canada Branch, Morgan Stanley Bank, The Bank of Nova Scotia, TD Bank, Cooperative Rabobank, U.S. Bank, Sumitomo Mitsui Banking Corporation, Comerica Bank, Capital One, Commerzbank AG New York Branch, and People's United Bank. The maturity is October 1, 2023. In April 2021, the lenders entered into another loan agreement and replaced ICBC as a lender.
Staff comments
1. The entirety of the loan contract can be accessed through https://www.sec.gov/Archives/edgar/data/1584509/000119312517101789/d367212dex101.htm 2. Aramark is an American food service and facilities services provider to clients in areas including education, prisons, healthcare, business, and leisure. It operates in North America (United States and Canada) and an additional 14 countries. 3. AidData estimates the interest for the loan by adding the 6 month LIBOR rate for March 2017 and the margin (1.75%).