Barclays has provided financing for Roark Capital's proposed acquisition of the ServiceMaster Brands business from ServiceMaster Global Holdings Inc. for $1.553 billion, according to a statement. Further details of the financing were not disclosed.

With this transaction NYSE-listed ServiceMaster Global Holdings will divest its residential and commercial services brands to Roark and retain the pest control business, adopting the Terminix name at closing. The company expects net proceeds of $1.1 billion, which will be put toward debt repayment to within its target leverage range of 2.5-3x, for investment in the pest control business, and for returns to shareholders. Closing of the transaction is expected in approximately 30-60 days, according to the company.

As of June 30, 2020, ServiceMaster (BB-/Ba3) had outstanding a covenant-lite term loan B due November 2026 (L+175, 0% LIBOR floor) that totaled $591 million; $743 million of 5.125% notes due 2024; $168 million of 7.45% notes due 2027; and $40 million of 7.25% notes due 2038.

The ServiceMaster portfolio being acquired by the private equity firm is a network of franchised and company-owned businesses operating under brands such as ServiceMaster Restore, ServiceMaster Clean, Merry Maids, AmeriSpec, and Furniture Medic. As of June 30, 2020, this unit generated systemwide sales of $2.663 billion and revenue of $256 million.