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MARTIN LIPTON HERBERT M. WACHTELL THEODORE N. MIRVIS EDWARD D. HERLIHY DANIEL A. NEFF ANDREW R. BROWNSTEIN STEVEN A. ROSENBLUM JOHN F. SAVARESE SCOTT K. CHARLES JODI J. SCHWARTZ ADAM O. EMMERICH RALPH M. LEVENE RICHARD G. MASON ROBIN PANOVKA DAVID A. KATZ ILENE KNABLE GOTTS JEFFREY M. WINTNER TREVOR S. NORWITZ BEN M. GERMANA ANDREW J. NUSSBAUM RACHELLE SILVERBERG STEVEN A. COHEN DEBORAH L. PAUL | DAVID C. KARP RICHARD K. KIM JOSHUA R. CAMMAKER MARK GORDON JEANNEMARIE O’BRIEN WAYNE M. CARLIN STEPHEN R. DiPRIMA NICHOLAS G. DEMMO IGOR KIRMAN JONATHAN M. MOSES T. EIKO STANGE WILLIAM SAVITT GREGORY E. OSTLING DAVID B. ANDERS ADAM J. SHAPIRO NELSON O. FITTS JOSHUA M. HOLMES DAVID E. SHAPIRO DAMIAN G. DIDDEN IAN BOCZKO MATTHEW M. GUEST DAVID E. KAHAN DAVID K. LAM | 51 WEST 52ND STREET NEW YORK, N.Y. 10019-6150 TELEPHONE: (212) 403-1000 FACSIMILE: (212) 403-2000 ____________ | DAVID K. LAM BENJAMIN M. ROTH JOSHUA A. FELTMAN ELAINE P. GOLIN EMIL A. KLEINHAUS KARESSA L. CAIN RONALD C. CHEN GORDON S. MOODIE BRADLEY R. WILSON GRAHAM W. MELI GREGORY E. PESSIN CARRIE M. REILLY MARK F. VEBLEN SARAH K. EDDY VICTOR GOLDFELD BRANDON C. PRICE KEVIN S. SCHWARTZ MICHAEL S. BENN SABASTIAN V. NILES ALISON ZIESKE PREISS TIJANA J. DVORNIC JENNA E. LEVINE RYAN A. McLEOD | JOHN R. SOBOLEWSKI STEVEN WINTER EMILY D. JOHNSON JACOB A. KLING RAAJ S. NARAYAN VIKTOR SAPEZHNIKOV MICHAEL J. SCHOBEL ELINA TETELBAUM ERICA E. BONNETT LAUREN M. KOFKE ZACHARY S. PODOLSKY RACHEL B. REISBERG MARK A. STAGLIANO CYNTHIA FERNANDEZ LUMERMANN CHRISTINA C. MA NOAH B. YAVITZ BENJAMIN S. ARFA NATHANIEL D. CULLERTON ERIC M. FEINSTEIN ADAM L. GOODMAN | |||||||||||||
GEORGE A. KATZ (1965–1989) JAMES H. FOGELSON (1967–1991) LEONARD M. ROSEN (1965–2014) ____________ OF COUNSEL | |||||||||||||||||
MICHAEL H. BYOWITZ KENNETH B. FORREST SELWYN B. GOLDBERG PETER C. HEIN JB KELLY MEYER G. KOPLOW JOSEPH D. LARSON LAWRENCE S. MAKOW DOUGLAS K. MAYER PHILIP MINDLIN DAVID S. NEILL HAROLD S. NOVIKOFF LAWRENCE B. PEDOWITZ ERIC S. ROBINSON | ERIC M. ROSOF ERIC M. ROTH PAUL K. ROWE DAVID A. SCHWARTZ MICHAEL J. SEGAL DAVID M. SILK ROSEMARY SPAZIANI ELLIOTT V. STEIN WARREN R. STERN LEO E. STRINE, JR.* PAUL VIZCARRONDO, JR. PATRICIA A. VLAHAKIS AMY R. WOLF MARC WOLINSKY | ||||||||||||||||
* ADMITTED IN DELAWARE ____________ COUNSEL | |||||||||||||||||
DAVID M. ADLERSTEIN SUMITA AHUJA LOUIS J. BARASH FRANCO CASTELLI ANDREW J.H. CHEUNG PAMELA EHRENKRANZ KATHRYN GETTLES-ATWA ADAM M. GOGOLAK NANCY B. GREENBAUM | ANGELA K. HERRING MARK A. KOENIG CARMEN X.W. LU J. AUSTIN LYONS ALICIA C. McCARTHY JUSTIN R. ORR NEIL M. SNYDER JEFFREY A. WATIKER | ||||||||||||||||
July 28, 2023
VIA EDGAR SUBMISSION
U.S. Securities and Exchange Commission
Division of Corporation Finance
100 F Street, NE
Washington, D.C. 20549
| Attention: | Rucha Pandit and Mara Ransom | ||||
| Division of Corporation Finance | |||||
| Office of Trade & Services | |||||
| Re: | Epic NewCo, Inc. | ||||
| Amendment No. 2 to Draft Registration Statement on Form 10-12B | |||||
| Submitted July 7, 2023 | |||||
| CIK No. 0001967649 | |||||
Ladies and Gentlemen:
On behalf of our client, Epic NewCo, Inc. (the “Company”), we are providing the Company’s responses to the comments of the Staff of the Division of Corporation Finance (the “Staff”) of the U.S. Securities and Exchange Commission set forth in its letter, dated July 17, 2023, with respect to the above-referenced Amendment No. 2 to Draft Registration Statement on Form 10-12B (the “Second Amendment”). The Company is
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concurrently confidentially submitting to the Staff its Amendment No. 3 to Draft Registration Statement (the “Third Amendment”) via EDGAR.
For the Staff’s convenience, the text of the Staff’s comment is set forth below in bold, followed by the Company’s response. Terms not otherwise defined in this letter shall have the meanings set forth in the Third Amendment. All references to page numbers in these responses are to the pages of the Third Amendment.
Amendment No. 2 to Draft Registration Statement on Form 10-12B
Will NewCo incur any indebtedness prior to or at the time of the distribution?, page 7
1.We note your disclosure that you anticipate having “approximately $1,500 million of indebtedness upon completion of the distribution[,]” which you expect to consist of borrowings under “one or more senior secured term loan facilities.” We also note that you expect to enter into a “$300 million revolving credit facility.” Please revise your disclosure here, in the Risk Factors section, in the Separation and Distribution section, the Description of Material Indebtedness section and elsewhere as appropriate to note the material terms of each of the agreements discussed above, including but not limited to, the parties to the agreements, the interest rates, the duration of each agreement and the termination provisions. Please also file the agreements as exhibits to your registration statement or tell us why you are not required to do so. Refer to Item 601(b)(10) of Regulation S-K.
Response: In response to the Staff’s comment, the Company has revised the disclosure on pages 7, 34, 44, 48, 58, 86 and 134 of the Third Amendment to reflect the expected material terms of the agreements concerning the Company’s material indebtedness at the time of the distribution. The Company respectfully advises the Staff that it is currently negotiating the terms of such material indebtedness and does not expect to enter into definitive agreements with respect to such indebtedness prior to the effectiveness of its registration statement on Form 10-12B. As a result, the Company has not filed definitive agreements with respect to such financing arrangements and does not expect to file any such definitive agreements as exhibits to future nonpublic draft registration statement submissions or registration statement filings. The Company intends to comply with Item 601(b)(10) of Regulation S-K with respect to any definitive agreements entered into in connection with any such financing arrangements.
Unaudited Pro Forma Condensed Combined Financial Information
Note (h), page 57
2.Autonomous entity adjustments reflect changes in your costs resulting from agreements in place. Changes in costs that are not evidenced by agreements in place would ordinarily not be autonomous entity adjustments. Please tell us your basis for
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including the first, second and fourth bullet points as autonomous entity adjustments.
Response: The Company acknowledges the Staff’s comment and has reviewed its disclosures on page 59 of the Third Amendment. The Company respectfully advises the Staff that the disclosure stated and states in the Third Amendment that the costs required to operate as a standalone public company within Note (h) were “based on contractual or negotiated arrangements.” Further, the Company has revised its bullet points within Note (h) to disclose its basis for including the first, second and fourth bullet points as autonomous entity adjustments whereby the changes in its costs are based upon contractual or negotiated arrangements that the Company has executed or is probable of executing prior to the separation and distribution.
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If you have any questions, please do not hesitate to contact the undersigned at (212) 403-1107 or AZPreiss@wlrk.com or my colleague David A. Katz at (212) 403-1309 or DAKatz@wlrk.com.
| Very truly yours, | ||
| /s/ Alison Z. Preiss | ||
| Alison Z. Preiss | ||
| cc: | Harold Dichter, Aramark | ||||
| Tim Donovan, Aramark | |||||
| Kim Scott, Aramark | |||||
| David A. Katz, Wachtell, Lipton, Rosen & Katz | |||||