Aramark completes repricing of $730 million term loan

PHILADELPHIA - Aramark (NYSE:ARMK), a $10.4 billion market cap company with annual revenues of $17.9 billion, announced Monday it has completed the repricing of its 2028 Term Loan B valued at $730 million, reducing the interest rate by 25 basis points. The new applicable interest rate will be the Secured Overnight Financing Rate (SOFR) plus 175 basis points.

The food and facilities management company said the oversubscribed repricing is expected to generate annual interest expense savings. The transaction does not change Aramark’s outstanding debt of $6.6 billion, maturities, or covenants. According to InvestingPro data, the company maintains profitable operations with $1.2 billion in EBITDA over the last twelve months.

"By reducing our interest expense, we are creating additional financial flexibility to deliver value for our shareholders," said James Tarangelo, Aramark’s Chief Financial Officer, in a press release statement.

Tarangelo added that the repricing reflects the strength of the company’s financial profile and market confidence in Aramark’s business opportunities.

Aramark provides food and facilities management services to educational institutions, Fortune 500 companies, sports teams, healthcare providers, and cultural attractions across 16 countries.

In other recent news, Aramark Holdings reported its third-quarter earnings for 2025, revealing a revenue miss. The company achieved an earnings per share (EPS) of $0.40, aligning with forecasts, but its revenue of $4.63 billion fell short of the anticipated $4.66 billion. Despite this, several analysts have maintained or adjusted their outlooks on the company. Stifel reiterated its Buy rating on Aramark with a price target of $49, citing strong future growth potential, even though the current quarter’s results were softer than expected. Baird upgraded Aramark from Neutral to Outperform, increasing its price target to $47, highlighting a longer-term opportunity following the company’s recent results. UBS also raised its price target for Aramark to $46 while maintaining a Buy rating, despite noting the company’s second consecutive quarter of softer organic growth. These recent developments have contributed to a complex outlook for Aramark as it navigates its fiscal challenges and opportunities.

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