TSL Express Daily News

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) (the “Company”) today announced that certain subsidiaries that operate the Company’s KFC, Pizza Hut and Taco Bell businesses have completed the refinancing of the existing approximately $713 million term loan A facility and $1.25 billion revolving facility (the “Existing Facilities”) through the issuance of a $500 million term loan A (the “Term A Loan”) and a $1.50 billion revolving credit facility (the “Revolving Facility”) pursuant to an amendment to the underlying credit agreement (the “Amendment”). The Term A Loan and the Revolving Facility will mature on the earliest of (i) April 26, 2029, (ii) the date that is 91 days prior to the maturity of the borrowers’ existing term loan B if more than $250 million of such term loan B remains outstanding as of such date and (iii) the date that is 91 days prior to the maturity of the borrowers’ existing senior notes if more than $250 million of such senior notes remains outstanding as of such date. The total size of the bank credit facility (excluding the borrowers’ existing $1.46 billion term loan B) remains ~$2.00 billion and the transaction does not add any additional net new debt to the balance sheet.

The interest rates applicable to the Term A Loan and to borrowings under the Revolving Facility have not changed from the Existing Facilities. The interest rates will be based on either Adjusted Term SOFR or the base rate, as determined by the borrowers, plus a spread based on the borrowers’ total leverage ratio. Adjusted Term SOFR refers to one month term SOFR plus 0.11448%, three month term SOFR plus 0.26161% or six month term SOFR plus 0.42826%, as selected by the borrowers. Such spread based on the borrowers’ total leverage ratio is initially 0.75% for Adjusted Term SOFR loans and 0.00% for base rate loans and ranges between 0.75% and 1.50% for Adjusted Term SOFR loans and between 0.00% and 0.50% for base rate loans based on the total leverage ratio. The “base rate” means the greatest of (a) the Prime Rate then in effect, (b) the federal funds rate then in effect plus 0.5% and (c) the rate for one month Adjusted Term SOFR rate then in effect plus 1.0%. The Term A Loan will amortize at 2.5% per annum during the second and third years following closing and at 5.0% per annum during the fourth and fifth years following closing.

Proceeds from the issuance will be used to repay the Existing Facilities and pay associated transaction fees and expenses, and for general corporate purposes.

Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 59,000 restaurants in more than 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut and the Habit Burger Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style food, and pizza categories, respectively. The Habit Burger Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America for the eighth consecutive year, and the company was recognized among TIME Magazine’s list of Best Companies for Future Leaders and Newsweek’s list of America’s Most Responsible Companies. Yum! also received widespread recognition in 2023, including being listed on the Bloomberg Gender-Equality Index; Forbes’ list of America’s Best Employers for Diversity; and Newsweek’s list of America’s Greenest Companies. In addition, KFC, Taco Bell and Pizza Hut brands were ranked in the top five of Entrepreneur’s Top Global Franchises Ranking for 2023.

Category: Financial

Contacts

Analysts are invited to contact:
Matt Morris, Head of Investor Relations, at 888/298-6986

Members of the media are invited to contact:
Virginia Ferguson, Vice President, Public Relations, at 502/874-8200