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v3.23.2

Borrowings | 9 Months Ended
--- | ---
Jun. 30, 2023
Debt Disclosure [Abstract] |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands):
|  | June 30, 2023 |  | September 30, 2022
Senior secured revolving credit facility, due April 2026 |  | $ | 505,669 |  |  | $ | 90,897 |
Senior secured term loan facility, due March 2025 |  | — |  |  | 1,661,611 |
Senior secured term loan facility, due April 2026 |  | 281,403 |  |  | 334,135 |
Senior secured term loan facility, due January 2027 |  | 835,375 |  |  | 834,619 |
Senior secured term loan facility, due April 2028 |  | 724,084 |  |  | 723,170 |
Senior secured term loan facility, due June 2030 |  | 1,081,069 |  |  | — |
5.000% senior notes, due April 2025 |  | 548,999 |  |  | 547,981 |
3.125% senior notes, due April 2025(1) |  | 353,474 |  |  | 317,204 |
6.375% senior notes, due May 2025 |  | 1,490,984 |  |  | 1,487,593 |
5.000% senior notes, due February 2028 |  | 1,142,549 |  |  | 1,141,491 |
Receivables Facility, due June 2024 |  | 500,000 |  |  | 104,935 |
Finance leases |  | 156,329 |  |  | 147,373 |
Other |  | 26,417 |  |  | 19,898 |
|  | 7,646,352 |  |  | 7,410,907 |
Less—current portion |  | (110,602) |  |  | (65,047) |
|  | $ | 7,535,750 |  |  | $ | 7,345,860 |
(1) | This is a Euro denominated borrowing.
As of June 30, 2023, there were approximately $823.8 million of outstanding foreign currency borrowings. As of June 30, 2023, the Company had approximately $618.3 million of availability under the senior secured revolving credit facility. Senior Secured Credit Agreement On April 17, 2023, the Company repaid $468.0 million of the United States dollar denominated term loans due 2025 ("U.S. Term B-3 Loans due 2025"), and ¥8,409.0 million ($63.0 million) of yen denominated term loans due 2026. On May 31, 2023, the Company repaid $100.0 million of U.S. Term B-3 Loans due 2025. On June 22, 2023, Aramark Services, Inc. ("ASI"), an indirect wholly owned subsidiary of the Company, and certain of its subsidiaries entered into Amendment No. 12 to the Credit Agreement, dated March 28, 2017, which provides for, among other things, the extension of the maturity date applicable to all of the U.S. Term B-3 Loans due 2025 through the establishment of new United States dollar denominated term loans due 2030 ("U.S. Term B-6 Loans due 2030") in an amount equal to approximately $1.1 billion. The new U.S. Term B-6 Loans due 2030 were funded in full on June 22, 2023 and were applied by the Company to refinance the remaining U.S. Term B-3 Loans due 2025. The new U.S. Term B-6 Loans due 2030 bear interest rate equal to either (a) a forward-looking term rate based on the Secured Overnight Financing Rate ("SOFR") for the applicable interest period, plus a credit spread adjustment of (i) 0.11448% for borrowings with interest periods of one month, (ii) 0.26161% for borrowings with interest periods of three months and (iii) 0.42826% for borrowings with interest periods of six months (“Adjusted Term SOFR”) 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 Adjusted Term SOFR plus 1.00% plus an applicable margin set initially at 2.50% for borrowings based on Adjusted Term SOFR and 1.50% for borrowings based on the base rate. The U.S. Term B-6 Loans due 2030 require the payment of installments in a quarterly principal amount of $2,750,000 from September 30, 2023 through March 31, 2030, and $1,025,750,000 at maturity. The U.S. Term B-6 Loans due 2030 are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s other U.S. Term B Loans outstanding under the Credit Agreement. The Company capitalized $8.0 million of costs associated with the issuance of the U.S. Term B-6 Loans due 2030, which are amortized using the effective interest method over the term of the loans and presented on the Condensed Consolidated Balance Sheet as a direct deduction from the carrying value of the loans. The Company also incurred an original issue discount of $11.0 million upon the issuance of the U.S. Term B-6 Loans due 2030. The discount is included as an adjustment to the carrying value of the loans and is amortized using the effective interest method over the term of loans in accordance with the accounting literature. In conjunction with Amendment No. 12 to the Credit Agreement and the borrowing repayments, the Company recorded a $2.5 million non-cash loss for the write-off of unamortized deferred debt issuance costs to "Interest and Other Financing Costs, net" on the Condensed Consolidated Statements of Income during the three and nine months ended June 30, 2023. On June 29, 2023, ASI entered into Amendment No. 13 to the Credit Agreement, dated March 28, 2017, which provides for a transition of the underlying interest rate applicable to all term loans outstanding and revolving credit commitments and loans available and/or outstanding, in each case, under the Credit Agreement, from a LIBOR-based rate to a forward-looking term rate based on SOFR. All borrowings based on SOFR under the Credit Agreement are subject to a credit spread adjustment of (i) 0.11448% for borrowings with interest periods of one month, (ii) 0.26161% for borrowings with interest periods of three months and (iii) 0.42826% for borrowings with interest periods of six months but the associated interest rate margins applicable to all such borrowings remain unchanged. Amendment No. 13 was entered into in preparation for the general cessation of LIBOR-based borrowings in the leverage lending industry as of June 30, 2023. Receivables Facility On July 19, 2023, the Company increased the purchase limit available under the Receivables Facility from $500.0 million to $600.0 million and extended the scheduled maturity date of the Receivables Facility from June 2024 to July 2026. All other terms and conditions of the agreement remained unchanged.

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- Definition The entire disclosure for 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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