Published on 9/4/2019 in the Prospect News High Yield Daily.
New Issue: Yum! Brands prices upsized $800 million of notes due 2030 at par to yield 4¾%
By Cristal Cody
Tupelo, Miss., Sept. 4 – Yum! Brands, Inc. priced an upsized $800 million of senior notes due Jan. 15, 2030 (B1/B+) in a Rule 144A and Regulation S for life deal on Wednesday at par to yield 4¾%, according to a market source.
Initial price talk was in the 4 7/8% area.
The notes priced with a spread of 329 basis points over Treasuries.
The offering was upsized from $600 million.
Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to fund the repayment of $250 million of the company’s 5.3% senior notes due 2019, to repay amounts outstanding under its revolving credit facility and for general corporate purposes.
Yum! Brands is the Louisville, Ky.-based operator of restaurant chains including KFC, Pizza Hut and Taco Bell.
Issuer: | Yum! Brands, Inc.
|
Amount: | $800 million
|
Description: | Senior notes
|
Maturity: | Jan. 15, 2030
|
Bookrunners: | Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC
|
Senior co-managers: | Barclays, Fifth Third Securities, Inc. and MUFG
|
Co-managers: | ICBC Standard Bank plc, Scotia Capital (USA) Inc., ING Financial Markets LLC, Rabo Securities USA, Inc. and Williams Capital Group LP
|
Coupon: | 4¾%
|
Price: | Par
|
Yield: | 4¾%
|
Spread: | Treasuries plus 329 bps
|
Call features: | Make-whole call at Treasuries plus 50 bps before Oct. 15, 2029; par thereafter
|
Change-of-control put: | 101%
|
Trade date: | Sept. 4
|
Settlement date: | Sept. 11
|
Ratings: | Moody’s: B1
|
| S&P: B+
|
Distribution: | Rule 144A and Regulation S for life
|
Marketing: | Global investor calls
|
Price guidance: | 4 7/8% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.