Aramark reduces loan costs, freeing up capital for future growth initiatives

Food and facilities management provider Aramark has successfully repriced its $730 million Term Loan B due 2028, the company announced. The adjustment lowers the interest rate by 25 basis points to SOFR plus 175. The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate based on market conditions. The move is expected to generate annual interest savings without altering debt levels, maturities or covenants for the company, which has a strong footprint in vending and convenience services.

Repricing its debt strengthens Aramark’s ability to invest in its core business lines, including foodservice, micro markets and vending operations. Greater financial flexibility could support innovation, technology upgrades, and expansion of workplace dining and unattended retail solutions—areas where Aramark has been actively developing.

“The oversubscribed repricing reflects the strength of our financial profile and the market’s confidence in the opportunities ahead,” said James Tarangelo, Aramark’s CFO, in a release. He emphasized that lowering interest costs creates room to reinvest in growth and deliver additional value across the company’s operations.