Yum! Brands determines payout in tender offer for 7.7% notes due 2012

By Angela McDaniels

Tacoma, Wash., May 27 - Yum! Brands Inc. said it will pay $1,068.10 for each $1,000 principal amount of notes tendered in its offer to purchase up to $150 million of its $400 million 7.7% senior notes due July 1, 2012.

The payout includes an early tender payment of $40.00 per $1,000 principal amount, according to a company news release. Holders will also receive accrued interest up to but excluding the settlement date.

Pricing was set on May 26 using the bid-side price on the 1.75% Treasury note due March 31, 2014 plus 305 basis points.

The offer began on April 30 and will expire at 11:59 p.m. ET on May 28.

As previously reported, the offer was amended so that all holders whose notes are accepted will receive the early tender payment. Prior to the change, only holders who tendered by May 13, the early tender deadline, would have received the early tender payment.

As of 5 p.m. ET on May 13, holders had tendered $129 million of the notes.

Goldman, Sachs & Co. (800 828-3182 or call collect 212 902-5183) and J.P. Morgan Securities Inc. (866 834-4666 or call collect 212 834-3424) are the dealer managers. Okapi Partners LLC (877 796-5274 or call collect 212 297-0720) is the information agent.

Yum! Brands is a Louisville, Ky.-based restaurant company.

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