New Issue: Aramark prices $600 million 8 5/8% PIK toggle notes due 2016 at 99

By Paul A. Harris

Portland, Ore., April 4 - Aramark Holdings Corp. priced a $600 million issue of 8 5/8% five-year senior PIK/toggle holdco notes (B3/B-/) at 99 to yield 8.874% on Monday, according to a market source.

The cash coupon is 8 5/8%. The PIK coupon is 9 3/8%.

The deal priced on top of the 8 5/8% cash coupon talk, which had been downwardly revised from 8¾% to 9%. The reoffer price came on top of the original price talk.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays Capital Inc., Merrill Lynch and Wells Fargo Securities were the joint bookrunners for the quick-to-market issue.

The Philadelphia-based provider of facilities management services and food services plans to use the proceeds to pay a dividend to Aramark stockholders.

Issuer:	Aramark Holdings Corp.
Face amount:	$600 million
Proceeds:	$594 million
Maturity:	May 1, 2016
Securities:	Senior PIK/toggle holdco notes
Bookrunners:	J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays Capital Inc., Merrill Lynch, Wells Fargo Securities
Co-managers:	PNC Capital Markets LLC, Santander
Cash coupon:	8 5/8%
PIK coupon:	9 3/8%
Price:	99.00
Yield:	8.874%
Spread:	668 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2012, then callable at 102, 101, par on and after May 1, 2014
Equity clawback:	35% at 108.625 until April 15, 2014
Trade date:	April 4
Settlement date:	April 18
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S
Price talk:	8 5/8% cash coupon at 99 (revised downward from 8¾% to 9% cash coupon at 99)
Marketing:	Quick to market

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