YUM! Brands, Inc. announced the pricing of $1.5 billion in securitized notes through a special purpose subsidiary of Taco Bell Corp.
The notes consist of two tranches with different interest rates and maturity dates, offering quarterly interest payments.
Proceeds from the notes will be used for various purposes including debt repayment and potential capital return to shareholders.
Securitized Notes Details
Includes $1 billion in Series 2025-1 Class A-2-I Notes and $500 million in Series 2025-1 Class A-2-II Notes with different maturity dates.
Use of Proceeds
Primarily for repayment of existing debt, transaction expenses, corporate purposes, and potentially returning capital to shareholders.
Closing Date
Expected to close on September 24, 2025, subject to closing conditions.
- The sale of securitized notes will provide YUM! Brands, Inc. with a source of financing for strategic initiatives and capital structure management.
- Potential reduction in interest expenses and improved cash flow through debt refinancing and repayment plans.
The issuance of securitized notes enriches YUM! Brands, Inc.'s financial flexibility and positions the company for continued growth and shareholder value enhancement.