By Aleesia Forni
Virginia Beach, Oct. 22 - Yum! Brands Inc. came to Tuesday's market with $600 million of senior notes (Baa3/BBB/) in two parts, according to a syndicate source and an FWP filed with the Securities and Exchange Commission.
Both tranches sold at the tight end of talk.
The deal included $325 million 3.875% senior notes due 2023 priced at a spread of Treasuries plus 140 basis points, or 99.63 to yield 3.92%.
Yum also sold $275 million of 5.35% senior notes due 2043 at 170 bps over Treasuries.
Pricing was at 99.955 to yield 5.353%.
Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds will be used to fund tender offers for up to $525 million of the company's senior notes and to pay premiums in connection with those tender offers.
The fast food chain operator is based in Louisville, Ky.
| Issuer: | Yum! Brands Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 31
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Distribution: | SEC registered
|
|
|
| Ten-year notes
|
| Amount: | $325 million
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 3.875%
|
| Price: | 99.63
|
| Yield: | 3.92%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 145 bps area, tightened from Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps, callable at par within three months of maturity date
|
|
|
| Thirty-year notes
|
| Amount: | $275 million
|
| Maturity: | Nov. 1, 2043
|
| Coupon: | 5.35%
|
| Price: | 99.955
|
| Yield: | 5.353%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 175 bps area, tightened Treasuries plus 190 bps area
|
| Make-whole call: | Treasuries plus 25 bps, callable at par within three months of maturity date
|
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