By Paul A. Harris
St. Louis, Mo., June 25 - Yum! Brands, Inc. upsized to $400 million from $350 million its offering of senior notes due July 1, 2012 (Ba1/BB/BB+) and priced them at 99.45 to yield 7.78%, according to syndicate sources. The sources added that the deal, though junk-rated, traded off high-grade desks.
Salomon Smith Barney and JP Morgan were joint bookrunners.
Proceeds from the off-the-shelf bullets will be used to repay bank debt or, if a new credit facility does not close prior to settlement, to repay debt on the existing facility. Yum! said Monday it expected to close the new credit facility on June 25.
The issuer, formerly known as Tricon Global, is a Louisville, Ky.-based owner and franchiser of fast food restaurants.
Issuer: Yum! Brands, Inc.
Amount: $400 million (increased from $350 million)
Maturity: July 1, 2012
Type: Senior notes
Bookrunners: Salomon Smith Barney, JP Morgan (joint)
Coupon: 7.70%
Price: 99.45
Yield: 7.78%
Spread: 292 basis points
Price talk: 295 basis points area
| Call features: | Make-whole call at T+45 basis points
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| Settlement date: | June 25, 2002
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| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Fitch: BB+
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