Published on 6/12/2017 in the Prospect News High Yield Daily.
New Issue: Yum! Brands prices upsized $750 million 4¾% 10-year notes at par
By Paul A. Harris
Portland, Ore., June 12 – Yum! Brands, Inc. priced an upsized $750 million issue of 10-year senior notes (B1/BB) at par to yield 4¾% on Monday, according to a syndicate source.
The issue size was increased from $500 million.
The yield printed on top of yield talk in the 4¾% area.
Goldman Sachs & Co. was the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Louisville, Ky.-based fast food company plans to use the proceeds to repay bank debt.
| Company: | Yum! Brands, Inc.
|
| Issuers: | KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | June 1, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
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| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Fifth Third, Rabo, Williams Capital Group LP, ING, Scotia Capital, ICBC, MUFG, Barclays, BofA Merrill Lynch
|
| Coupon: | 4¾%
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| Price: | Par
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| Yield: | 4¾%
|
| Spread: | 255 bps
|
| Call: | Callable after five years at 102.375
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| Trade date: | June 12
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| Settlement date: | June 15
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| Ratings: | Moody's: B1
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4¾% area
|
| Marketing: | Quick to market
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