Yum! Brands plans to sell $1.05 billion 10.75-year notes on Tuesday; initial talk 4¾% area

By Paul A. Harris

Portland, Ore., March 16 – Yum! Brands, Inc. plans to price a $1.05 billion public offering of senior notes due January 2032 (B1/BB-) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the 4¾% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. Wells Fargo Securities LLC, J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC and Barclays are the joint bookrunners.

Fifth Third Securities Inc., MUFG, ING Financial Markets LLC and Capital One Securities Inc. are the senior co-managers. Scotia Capital (USA) Inc., Rabo Securities USA Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., ICBC Standard Bank plc, HSBC Securities (USA) Inc., BNP Paribas Securities Corp. and Siebert Williams Shank & Co. LLC are the co-managers.

The 10.75-year notes come with 5.5 years of call protection.

The Louisville, Ky.-based fast food company plans to use the proceeds to repay its 5¼% notes due 2026.

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