SERV - ServiceMaster completes franchise business segment sales; to trade under TMX October 5

ServiceMaster Global Holdings (SERV) completed the sale of its ServiceMaster Brands franchise businesses to an affiliate of investment funds managed by Roark Capital Management LLC for $1.55B.It will change name to Terminix Global Holdings; trade under 'TMX' effective October 5, 2020."The transaction will deliver substantial financial benefits, allowing us to right-size our balance sheet below our long-term target net debt ratio of 2.5 to 3 times," CFO Tony DiLucente commented.Terminix's board authorizes three-year, $400M share repurchase program.Proceeds of ~$1.1B will be used to retire $750M of its existing 5.125% high yield bonds on November 15, 2020; for the same the company will pay a prepayment penalty of 2.563%.Excess cash to the balance sheet of ~$300M will be earmarked for accretive M&A opportunities.Also, the company closed an amendment to its existing credit agreement (~$51M advance amortization payment on the Term Loan B, maturity November 2026) that permits proceeds from the sale of ServiceMaster Brands to be used

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ServiceMaster completes franchise business segment sales; to trade under TMX, October 5