Published on 9/4/2019 in the Prospect News High Yield Daily.
New Issue: Yum! Brands prices upsized $800 million of notes due 2030 at par to yield 4¾%
By Cristal Cody
Tupelo, Miss., Sept. 4 – Yum! Brands, Inc. priced an upsized $800 million of senior notes due Jan. 15, 2030 (B1/B+) in a Rule 144A and Regulation S for life deal on Wednesday at par to yield 4¾%, according to a market source.
Initial price talk was in the 4 7/8% area.
The notes priced with a spread of 329 basis points over Treasuries.
The offering was upsized from $600 million.
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 were the bookrunners.
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.
| Issuer: | Yum! Brands, Inc.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2030
|
| Bookrunners: | 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
|
| Senior co-managers: | Barclays, Fifth Third Securities, Inc. and MUFG
|
| Co-managers: | ICBC Standard Bank plc, Scotia Capital (USA) Inc., ING Financial Markets LLC, Rabo Securities USA, Inc. and Williams Capital Group LP
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | Treasuries plus 329 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before Oct. 15, 2029; par thereafter
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody’s: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Global investor calls
|
| Price guidance: | 4 7/8% area
|
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