Aramark completed a repricing of its $2.4 billion 2030 Term Loan B on December 11, 2025, reducing the borrowing cost to SOFR plus 175 basis points—a 25‑basis‑point drop from the previous rate. The change is expected to lower annual interest expense by roughly $6 million, improving the company’s net cash flow and strengthening its balance sheet.
The repricing follows a consistent pattern of debt optimization. In March 2024, Aramark reduced the pricing on its 2030 Term Loan B (then $1.1 billion) by 50 basis points to SOFR plus 200 basis points, targeting about $10 million in annual savings. A similar 25‑basis‑point reduction was applied to the 2028 Term Loan B in August 2025. These actions demonstrate the company’s proactive use of favorable market conditions to keep leverage in check and preserve liquidity.
Chief Financial Officer James Tarangelo said the repricing was “opportunistically executed to lower interest expense given our extensive financial flexibility.” The move aligns with Aramark’s broader strategy to maintain a leverage ratio below 1.5× and to generate free cash flow that can be deployed for growth initiatives, share repurchases, or further debt reduction.
By reducing its interest burden, Aramark frees up capital that can be used to invest in high‑margin segments, support operational efficiencies, and provide a buffer against future interest rate volatility. The transaction also signals confidence in the company’s credit profile, reinforcing investor perception of Aramark’s financial resilience.
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