Yum Brands Announces $1.5 Billion Securitized Notes

By Bobby Samwell • Wednesday, September 10 10:22 • Permanent Link

YUM! Brands, Inc. has recently announced the pricing of $1.5 billion in securitized notes, with a special purpose subsidiary of Taco Bell Corp. named Taco Bell Funding, LLC, agreeing to issue and sell $1 billion aggregate principal amount of its Series 2025-1 4.821% Fixed Rate Senior Secured Notes, Class A-2-I and $500 million aggregate principal amount of its Series 2025-1 5.049% Fixed Rate Senior Secured Notes, Class A-2-II.

Interest on the notes will be payable quarterly, with the legal final maturity date set for August 2055. However, the anticipated repayment dates for the Class A-2-I and Class A-2-II notes are in August 2030 and August 2032, respectively.

The proceeds from the notes will be utilized for the full repayment of the Issuer’s outstanding Series 2016-1 Fixed Rate Senior Secured Notes, Class A-2-III. The remaining net proceeds will be distributed to Taco Bell Corp. to cover certain transaction-related expenses, general corporate purposes, repayment of outstanding borrowings of the revolving credit facility of YUM! Brands, Inc., and potential return of capital to shareholders of YUM! Brands, Inc.

The sale of the notes is expected to close on September 24, 2025, subject to the satisfaction of various closing conditions. The notes will be sold to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act of 1933 and to persons outside the United States in accordance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes or any other security, and any offers of the notes will be made only by means of a private offering circular.

For further details or inquiries, analysts can contact Matt Morris, Head of Investor Relations, at 888/298-6986, while members of the media can reach out to Lori Eberenz, Director, Public Relations, at 502/874-8200. Following these announcements, the company's shares moved -1.49%, and are now trading at a price of $145.78. Check out the company's full 8-K submission here.

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