YUM! Brands, Inc. has announced the pricing of $1.5 billion in securitized notes through its subsidiary, Taco Bell Funding, LLC. The notes consist of $1,000 million in Series 2025-1 4.821% Fixed Rate Senior Secured Notes, Class A-2-I, and $500 million in Series 2025-1 5.049% Fixed Rate Senior Secured Notes, Class A-2-II. The interest on these notes will be payable quarterly, with the legal final maturity date set for August 2055.
The proceeds from the notes will be used to repay the Issuer's outstanding Series 2016-1 Fixed Rate Senior Secured Notes, Class A-2-III. The remaining net proceeds will be utilized for various purposes, including the repayment of outstanding borrowings of YUM! Brands, Inc.'s revolving credit facility and potentially returning capital to its shareholders.
The closing of the sale of the notes is expected on September 24, 2025, subject to the satisfaction of various closing conditions. The notes are being offered to qualified institutional buyers in the United States and to persons outside the United States.
YUM! Brands, Inc. has outlined the intended use of the proceeds from the issuance of the securitized notes and the expected closing date of the sale. This move represents a significant financing activity for the company, with implications for its capital structure and financial flexibility. The market has reacted to these announcements by moving the company's shares 0.77% to a price of $146.905. For the full picture, make sure to review YUM BRANDS INC's 8-K report.
