By Andrea Heisinger
New York, Aug. 20 - Yum! Brands, Inc. priced $500 million senior notes (Baa3/BBB-/BBB-) in two tranches Thursday, an informed source said.
The $250 million of 4.25% six-year notes priced at 99.765 to yield 4.294%, or Treasuries plus 187.5 basis points.
A $250 million tranche of 5.3% 10-year notes priced at 99.849 to yield 5.319%, or Treasuries plus 187.5 bps.
Both tranches have make-whole calls at Treasuries plus 30 bps and feature a change-of-control put of 101%.
The size remained the same throughout the pricing process, the informed source said.
Both tranches came at the tight end of price guidance that was in the 190 bps area, with a margin of plus or minus 2.5 bps, she said.
Bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.
Proceeds will be used for a contribution of between $150 million and $200 million to a defined benefit pension plan before the end of the fiscal year. They will also be used to repay borrowings under a term loan credit facility due July 2011.
The operator of fast-food chains is based in Louisville, Ky.
| Issuer: | Yum! Brands, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $500 million
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 20
|
| Settlement date: | Aug. 25
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Six-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 15, 2015
|
| Coupon: | 4.25%
|
| Price: | 99.765
|
| Yield: | 4.294%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 190 bps area, plus or minus 2.5 bps
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 15, 2019
|
| Coupon: | 5.3%
|
| Price: | 99.849
|
| Yield: | 5.319%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 190 bps area, plus or minus 2.5 bps
|
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