Published on 9/9/2020 in the Prospect News High Yield Daily.
New Issue: YUM! Brands prices $1.05 billion 10.5-year bullet at par to yield 3 5/8%
By Paul A. Harris
Portland, Ore., Sept. 9 – YUM! Brands, Inc. priced $1.05 billion of senior bullet notes due March 15, 2031 (B1/B+) at par to yield 3 5/8% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 3¾% area. Initial talk had the deal coming to yield in the high 3% area.
Goldman Sachs & Co. LLC was the left bookrunner.
The Louisville, Ky.-based fast food company plans to use the proceeds to redeem all of its outstanding 5% senior notes due 2024.
| Issuer: | YUM! Brands, Inc.
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| Amount: | $1.05 billion
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| Maturity: | March 15, 2031
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Securities Inc.
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| Senior co-managers: | Morgan Stanley & Co. LLC, Barclays, Fifth Third Securities Inc., MUFG Securities Americas Inc.
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| Co-managers: | ICBC Standard Bank, Scotia Capital (USA) Inc., ING Financial Markets LLC, Rabo Securities USA, Inc., Siebert Williams Shank & Co. LLC
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| Coupon: | 3 5/8%
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| Price: | Par
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| Yield: | 3 5/8%
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| Call protection: | Par call three months prior to maturity, otherwise non-callable
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| Change of control: | At 101 plus interest
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| Trade date: | Sept. 9
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| Settlement date: | Sept. 25
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| Ratings: | Moody's: B1
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| S&P: B+
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| Distribution: | SEC registered
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| Price talk: | 3¾% area
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| Marketing: | Drive-by
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