Yum! Brands, Inc. the parent company of popular brands such as KFC, Pizza Hut and Taco Bell, on Thursday, announced that it planned on issuing the following fixed rate debt:
- $800m senior secured notes, paying 3.382%;
- $500m senior secured notes paying 4.377%;
- $1bn senior secured notes paying 4.97%
Interest would be paid on a quarterly basis on the notes.
Althought the legal final maturity date of the notes is May 2046, the anticipated repayment dates of the $800m notes, the $500m and the $1bn notes would be 4, 7 and 10 years, respectively.
Further, the company also intends to issue a $100m Series 2016-1 Class A-1 Note, to facilitate borrowing from time to time on a revolving basis.
The debt would be issued by the company through a privately placed securitized transaction.
Proceeds from the issuance would be utilised towards repayment of its entire outstanding balance of $2.0bn on its unsecured term loan facility.
The closing of the sale of debt is expected on 11 May 2016.