UPDATE 2-Aramark sells $1.78 bln notes for buyout

(Updates trading price, adds background)

NEW YORK, Jan 17 (Reuters) - Food services and uniform rental company Aramark Corp. RMK.N on Wednesday sold $1.78 billion of notes to help fund a buyout by its management and a group of private investors, according to a market source familiar with the sale.

The sale was well oversubscribed, helped by confidence that Aramark's steady revenues will help it improve its balance sheet over time after taking on debt for the buyout, investors looking at the deal said.

A spokeswoman for Aramark declined to comment on the private sale.

The sale included $500 million in eight-year floating rate notes with a coupon rate of 3.50 percentage points over the three-month London interbank offered rate.

It also included $1.28 billion in eight-year senior notes yielding 8.5 percent, or 3.75 percentage points over U.S. Treasuries.

Aramark's high-yield offering attracted about $12 billion in orders, a market source said.

In a sign of strong demand, the eight-year notes rose by more than two percentage points, to a bid of 102-1/8 cents on the dollar and an offer of 102-1/4 cents, a trader said.

Philadelphia-based Aramark, which provides food to colleges, stadiums, businesses and convenience stores, in August accepted a $6.3 billion buyout offer from a group led by its chairman and CEO, Joseph Neubauer, and several private equity firms.