Yum! Brands to issue $2.3bn of debt

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.

Source: Businesswire