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Yum! Brands sets Tuesday investor meeting, conference call for $2.3 billion two-part notes offer
By Paul A. Harris
Portland, Ore., May 31 – Yum! Brands scheduled a New York investor group lunch and global conference call at 12:15 p.m. ET on Tuesday for its $2.3 billion two-part offering of senior notes (B1/BB), according to market sources.
The deal is comprised of tranches of notes due in 2024, which come with three years of call protection, and notes due in 2026, which come with five years of call protection.
Early yield guidance has the shorter maturity eight-year paper coming at 4¾% to 5%, with the longer-dated 10-year notes expected to come 25 basis points behind the eight-year paper, implying a yield of 5% to 5¼%, a trader said.
Pricing is expected on Thursday, the trader added.
Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S deal. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
BofA Merrill Lynch, Fifth Third, MUFG, Barclays, ICBC and Rabobank are the co-managers.
The Louisville, Ky.-based fast food company plans to use the proceeds, together with $2.3 billion of new credit facilities and available cash, to make a cash distribution to its parent, to be used to fund share repurchases and/or a special dividend, also to repay its existing credit facility and for general corporate purposes.
Yum! operates KFC, Pizza Hut and Taco Bell.
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