Yum! Brands refinances credit facilities for $2 billion in two parts

By Wendy Van Sickle

Columbus, Ohio, April 26 – Yum! Brands Inc. completed the refinancing of its existing approximately $713 million term loan A facility and $1.25 billion revolving facility through the issuance of a $500 million term loan A and a $1.5 billion revolving credit facility, according to a news release.

The term A loan and the revolver will mature on the earliest of April 26, 2029, the date that is 91 days prior to the maturity of the borrowers’ existing term loan B if more than $250 million of such term loan B remains outstanding at that date and the date that is 91 days prior to the maturity of the borrowers’ existing senior notes if more than $250 million of the notes remains outstanding.

The total size of the bank credit facility – excluding the borrowers’ existing $1.46 billion term loan B – remains around $2, billion and the transaction does not add any additional net new debt to the balance sheet.

The interest rates applicable to the term A loan and to borrowings under the revolver have not changed at adjusted term SOFR, plus a spread based on the borrowers’ total leverage ratio. The spread is initially 75 basis points and from 75 bps to 150 bps.

The term A loan will amortize at 2.5% a year during the second and third years following closing and at 5% a year during the fourth and fifth years following closing.

Proceeds from the issuance will be used to repay the existing facilities and pay associated transaction fees and expenses, and for general corporate purposes.

Yum! Brands is a Louisville, Ky.-based quick-service restaurant operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.