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Borrowings

3 Months Ended

Dec. 27, 2019

Debt Disclosure [Abstract]

Borrowings

BORROWINGS:

Long-term borrowings, net, are summarized in the following table (in thousands):

		December 27, 2019				September 27, 2019
Senior secured revolving credit facility, due October 2023		$	78,711			$	51,410
Senior secured term loan facility, due October 2023		506,463				507,887
Senior secured term loan facility, due March 2024		829,535				829,344
Senior secured term loan facility, due March 2025		1,658,308				1,658,026
5.125% senior notes, due January 2024		902,213				902,351
5.000% senior notes, due April 2025		592,398				592,087
3.125% senior notes, due April 2025(1)		360,128				352,363
4.750% senior notes, due June 2026		494,898				494,731
5.000% senior notes, due February 2028		1,137,923				1,137,625
Receivables Facility, due May 2021		450,000				—
Finance leases		142,552				148,754
Other		17,572				7,589
		7,170,701				6,682,167
Less—current portion		(82,981		)		(69,928		)
		$	7,087,720			$	6,612,239

(1) This is a Euro denominated borrowing.

As of December 27, 2019, there was approximately $923.6 million of outstanding foreign currency borrowings.

Fiscal 2020 Refinancing Transactions

On January 15, 2020, Aramark Services, Inc. ("ASI"), an indirect wholly owned subsidiary of the Company, entered into Amendment No. 8 ("Amendment No. 8") to the credit agreement dated as of March 28, 2017 (as supplemented or otherwise modified from time to time, the "Credit Agreement") and last amended by Amendment No. 7 on October 1, 2018. Amendment No. 8 provides for an incremental, senior secured credit facility under the Credit Agreement comprised of a U.S. dollar denominated term loan made to ASI in an amount equal to $900.0 million, due January 15, 2027 (the "U.S. Term Loan B due 2027"). The U.S. Term Loan B due 2027 was borrowed with an original issue discount of 0.125%.

The net proceeds from the U.S. Term Loan B due 2027 were used to redeem the aggregate $900.0 million principal amount outstanding on ASI’s 5.125% Senior Notes due 2024 (the “2024 Notes”) at a redemption price of 102.563% of the aggregate principal amount and to pay accrued interest, certain fees and related expenses, including a $23.1 million call premium on the 2024 Notes and approximately $6.5 million of charges related to banker fees, rating agency fees and legal fees.

The U.S. Term Loan B due 2027 bears interest at a rate equal to, at the Company’s option, either (a) a LIBOR rate determined by reference to the costs of funds for deposits in U.S. dollars for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the prime rate of the administrative agent, (2) the federal funds rate plus 0.50% and (3) the LIBOR rate plus 1.00% plus an applicable margin set initially at 1.75% for borrowings based on the LIBOR rate, subject to a LIBOR floor of 0.00% and 0.75% for borrowings based on the base rate, subject to a minimum base rate of 0.00%.

The Company is required to make quarterly principal repayments on the U.S. Term Loan B due 2027 in quarterly amounts of 1.00% per annum of the funded total principal amount on the initial funding date thereof and is subject to substantially similar terms relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing U.S. Term Loan B due 2024 and U.S. Term Loan B due 2025, in each case, outstanding under the Credit Agreement.

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- Definition

The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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