By Andrea Heisinger
New York, Aug. 24 - Yum! Brands Inc. sold an upsized $350 million of 3.875% 10-year senior unsecured notes on Tuesday to yield 140 basis points over Treasuries, an informed source said.
The deal was initially at $300 million. Initial talk was in the 150 bps area, with the deal pricing at the tight end of revised guidance in the 145 bps area.
The notes (Baa3/BBB-/BBB-) sold at 99.867 to yield 3.89%.
The notes have a make-whole call at Treasuries plus 30 bps before three months prior to maturity and are callable afterward at par. There is a change-of-control put of 101%.
Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities Inc. were the bookrunners.
Proceeds are going for general corporate purposes, including repayment of outstanding debt.
The company last sold bonds in a $500 million two-tranche deal on Aug. 20, 2009. The 5.3% 10-year notes from that sale priced at 187.5 bps over Treasuries.
The fast food chain operator is based in Louisville, Ky.
| Issuer: | Yum! Brands Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $350 million, upsized from $300 million
|
| Maturity: | Nov. 1, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Coupon: | 3.875%
|
| Price: | 99.867
|
| Yield: | 3.89%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 30 bps before three months prior to maturity, after that at par
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 24
|
| Settlement date: | Aug. 31
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 145 bps area, revised from 150 bps area
|
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