YUM! Brands Announces Intention to Refinance Certain Notes Issued Pursuant to its Existing Securitization Financing Facility
06 August 2021 - 6:38AM
Business Wire
YUM! Brands, Inc. (NYSE: YUM) (the “Company”) today
announced its intention to refinance its Series 2016-1 Notes Fixed
Rate Senior Secured Notes, Class A-2-II (the “Series 2016-1
Class A-2-II Notes”) and Series 2018-1 Fixed Rate Senior
Secured Notes, Class A-2-I (the “Series 2018-1 Class A-2-I
Notes”), issued by a wholly-owned subsidiary of Taco Bell
Corp., pursuant to the Company’s securitization financing facility
(the “Securitization Financing”) securitizing Taco Bell's
U.S. franchise royalties.
As of June 30, 2021, the balances of the Series 2016-1 Class
A-2-II Notes, the Series 2016-1 Class A-2-III Notes (the “Series
2016-1 Class A-2-III Notes”), the Series 2018-1 Class A-2-I
Notes and the Series 2018-1 Class A-2-II Fixed Rate Senior Secured
Notes (the “Series 2018-1 Class A-2-II Notes”) issued
pursuant to the Securitization Financing were approximately $480
million, $960 million, $804 million and $609 million,
respectively.
The Company intends to replace the Series 2016-1 Class A-2-II
Notes and the Series 2018-1 Class A-2-I Notes with a new series of
notes issued pursuant to the Securitization Financing, expected to
be comprised of $2 billion of senior term notes (the “New
Notes”). The Company intends to use the net proceeds of the New
Notes for repayment of the Series 2016-1 Class A-2-II Notes and the
Series 2018-1 Class A-2-I Notes, certain transaction-related
expenses, for general corporate purposes and may also be used to
return capital to shareholders of the Company. The Series 2016-1
Class A-2-III Notes and Series 2018-1 Class A-2-II Notes will
remain outstanding.
There can be no assurance regarding the timing of a refinancing
transaction, the interest rate at which the Series 2016-1 Class
A-2-II Notes and the Series 2018-1 Class A-2-I Notes would be
refinanced, or that a refinancing transaction will be
completed.
The New Notes are being sold to qualified institutional buyers
in the United States in accordance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”),
and to persons outside the United States in accordance with
Regulation S under the Securities Act. The New Notes have not been,
and will not be, registered under the Securities Act, any state or
other jurisdictions securities laws and may not be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements of the Securities Act and
applicable state or other jurisdiction’s securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the New Notes or any other
security. Any offers of the New Notes will be made only by means of
a private offering circular.
Category: Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20210805006154/en/
Analysts are invited to contact: Jodi Dyer, Vice President,
Investor Relations and CFO, Digital & Technology at
888/298-6986
Members of the media are invited to contact: Virginia Ferguson,
Vice President, Public Relations, at 502/874-8200
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