By Andrea Heisinger
Omaha, Oct. 16 - Yum! Brands Inc. priced $1.2 billion of notes (Baa2/BBB-) in two tranches Tuesday, an informed source said.
The company sold a $600 million tranche of 6.25% notes due 2018 at 99.592 to yield 6.305%, or Treasuries plus 165 basis points. The tranche has a make-whole call at Treasuries plus 25 bps.
The company also priced a $600 million tranche of 6.875% 30-year notes at 99.575 to yield 6.908%, or Treasuries plus 200 bps. There is a make-whole call at Treasuries plus 30 bps.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co., Inc.
Proceeds will be used to repay borrowings under the company's revolving credit facility and for general corporate purposes.
The restaurant operator is based in Louisville, Ky.
| Issuer: | Yum! Brands Inc.
|
| Issue: | Notes
|
| Total amount: | $1.2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co., Inc.
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| Tranche due 2018
|
| Amount: | $600 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 6.25%
|
| Price: | 99.592
|
| Yield: | 6.305%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| Tranche due 2037
|
| Amount: | $600 million
|
| Maturity: | Nov. 15, 2037
|
| Coupon: | 6.875%
|
| Price: | 99.575
|
| Yield: | 6.908%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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