Yum! Brands talks upsized $800 million offering of senior notes due 2030 at 4 7/8% area

By Cristal Cody

Tupelo, Miss., Sept. 4 – Yum! Brands, Inc. plans to price an upsized $800 million offering of senior notes due Jan. 15, 2030 (B1/B+) on Wednesday, according to a market source and a news release.

Initial price talk was in the 4 7/8% area.

The Rule 144A and Regulation S for life deal was upsized from $600 million.

Investor calls are being held over the morning with pricing expected in the afternoon.

Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC are the bookrunners.

The senior co-managers are Barclays, Fifth Third Securities, Inc. and MUFG.

Co-managers are ICBC Standard Bank plc, Scotia Capital (USA) Inc., ING Financial Markets LLC, Rabo Securities USA, Inc. and Williams Capital Group LP.

The notes will have make-whole and par calls.

The issue includes a change-of-control put at 101%.

Proceeds will be used to fund the repayment of $250 million of the company’s 5.3% senior notes due 2019, to repay amounts outstanding under its revolving credit facility and for general corporate purposes.

Yum! Brands is the Louisville, Ky.-based operator of restaurant chains including KFC, Pizza Hut and Taco Bell.

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