New Issue: Yum! Brands prices upsized $600 million 7¾% five-year notes at par

By Paul A. Harris

Portland, Ore., March 30 – Yum! Brands, Inc. priced an upsized $600 million issue of five-year senior notes (B1/B+) at par to yield 7¾% in a Monday drive-by, according to market sources.

The issue size increased from $500 million.

The yield printed at the tight end of the 7¾% to 8% yield talk. Earlier guidance was in the 7¾% area, according to an investor, who added that the deal was playing to orders in excess of $3.5 billion at that guidance.

The Louisville, Ky.-based fast food company, whose brands include KFC, Taco Bell and Pizza Hut, plans to use the proceeds, including the additional proceeds resulting from the $100 million upsizing of the deal, for general corporate purposes.

Issuer:	Yum! Brands, LLC
Amount:	$600 million, increased from $500 million
Maturity:	April 1, 2025
Securities:	Senior notes
Left bookrunner:	Goldman Sachs & Co. LLC
Joint bookrunners:	Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC
Senior co-managers:	Barclays, Fifth Third Securities Inc. and MUFG
Co-managers:	ICBC Standard Bank plc, Scotia Capital (USA) Inc., ING Financial Markets LLC, Rabo Securities and Siebert Williams Shank & Co. LLC
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	737 bps
First call:	April 1, 2022 at 103.875
Trade date:	March 30
Settlement date:	April 1
Ratings:	Moody's: B1
	S&P: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7¾% to 8%
Marketing:	Quick to market

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