September 26, 2024 09:18 GMT
Sodexo (Baa1 Neg/BBB+/BBB+) is reportedly eyeing Aramark (Ba3 Pos/BB) (€17b) follow up #2
CONSUMER CYCLICALS
Aramark snr unsecured (bonds) are rated B2 Pos/BB- and it does have a local €325m '25 that is par-callable already. To maturity it trades at Z+65/3.9% (not much to see there).
The corporate family rating is Ba3/BB and the snr securred's (the TL's) are notched one higher at Ba2/BBB-.
Re. why the sizeable 4/5-notch difference between Sodexo and Aramark despite having similar market share, margins and recent growth - its largely the high leverage and lower FCF. Capex looks larger (similar in magnitude to Sodexo despite ~30% less in operating cash flow) and it seems to have faced one-off costs from Vestis/Uniform spin-off that was completed late last year.
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