By Andrea Heisinger
New York, Aug. 22 - Yum! Brands Inc. priced an upsized $350 million of 3.75% 10-year notes on Monday to yield Treasuries plus 170 basis points, an informed source said.
The deal size was increased from $300 million. The debt was sold at the tight end of guidance, which was in the 175 bps area, plus or minus 5 bps.
The notes (Baa3/BBB-/BBB) were priced at 99.615 to yield 3.795%. There is a make-whole call at 25 bps over Treasuries.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc.
Proceeds are being used for general corporate purposes.
Yum! Brands last priced $350 million of 3.875% 10-year debt on Aug. 24, 2010 at Treasuries plus 140 bps.
The fast food chain operator is based in Louisville, Ky.
| Issuer: | Yum! Brands Inc.
|
| Issue: | Senior notes
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Nov. 1, 2021
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Coupon: | 3.75%
|
| Price: | 99.615
|
| Yield: | 3.795%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Trade date: | Aug. 22
|
| Settlement date: | Aug. 29
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
| Price talk: | 175 bps area, plus or minus 5 bps
|
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