Benzinga | May 3, 2021 07:29AM EDT

Aramark Announces $500M Debt Repayment

Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced today that the Company is issuing notice to optionally redeem in full the $500 million outstanding principal amount of its 4.75% Senior Notes due 2026 effective on June 2, 2021. The Company 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 Tom Ondrof, Aramark's Chief Financial Officer. "These actions collectively reduce interest expense and further enhance our flexibility to drive our ongoing pursuit of growth opportunities."

As previously announced, Aramark is scheduled to host its fiscal second quarter earnings call on May 11, 2021 at 8:30 a.m. ET.