Yum! Brands, Inc. Completes Refinancing of Senior Secured Credit Facilities
March 15 2021 - 4:30PM
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 $1.9 billion term loan B facility,
approximately $431 million term loan A facility and approximately
$1.0 billion revolving facility (the “Existing Facilities”) through
the issuance of a $1.5 billion term loan B maturing March 15, 2028
(the “Term B Loan”), a $750 million term loan A maturing March 15,
2026 (the “Term A Loan”) and a $1.25 billion revolving credit
facility maturing March 15, 2026 (the “Revolving Facility”)
pursuant to an amendment to the underlying credit agreement (the
“Amendment”).
The interest rates applicable to the Term A Loan and to
borrowings under the Revolving Facility will be based on either
LIBOR or the base rate, as determined by the borrowers, plus a
spread based on the borrowers’ total leverage ratio. Such spread is
initially 1.00% for LIBOR loans and 0.00% for base rate loans and
ranges between 0.75% and 1.50% for LIBOR loans and between 0.00%
and 0.50% for base rate loans based on the total leverage ratio.
Borrowings under the Term B Loan accrue interest at an annual rate
of either LIBOR or the base rate, plus a spread of 1.75% for LIBOR
loans and 0.75% for base rate loans. 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
LIBOR 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. The Term B Loan will amortize at 1.0% per year,
and is subject to a 6-month 1.00% soft call provision. The
Amendment eases certain requirements with respect to mandatory
prepayments, and includes an increase to the limit of, and certain
other revisions in connection with, incremental credit extensions.
The Amendment also eases certain requirements and restrictions, and
increases certain baskets for, certain negative covenants,
including the investment, indebtedness and restricted payment
covenants, and includes a single financial maintenance covenant
requiring a total leverage ratio not to exceed 5.00:1.00, which
maximum level increases to 5.50:1.00 in certain circumstances
following material acquisitions. Further, the Amendment builds in a
hardwired approach for the replacement of LIBOR, as well as QFC
provisions and revisions to bail-in provisions. All other material
provisions of the underlying credit agreement remain unchanged.
Net proceeds from the issuance will be used to repay the
Existing Facilities, to pay associated transaction fees and
expenses, and for general corporate purposes.
Yum! Brands, Inc., based in Louisville, Kentucky, has over
50,000 restaurants in more than 150 countries and territories
primarily operating the Company’s KFC, Pizza Hut, and Taco Bell
brands – global leaders of the chicken, pizza, and Mexican-style
food categories. The Company’s family of brands also includes The
Habit Burger Grill, a fast-casual restaurant concept specializing
in made-to-order chargrilled burgers, sandwiches and more. Yum!
Brands was included on the 2021 Bloomberg Gender-Index and in 2020,
Yum! Brands was named to the Dow Jones Sustainability Index North
America and was ranked among the top 100 Best Corporate Citizens by
3BL Media.
Category: Financial
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210315005778/en/
Analysts are invited to contact: Keith Siegner, Vice President,
Investor Relations, M&A and Treasurer, at 888/298-6986
Members of the media are invited to contact: Virginia Ferguson,
Senior Director, Public Relations, at 502/874-8200
Yum Brands (NYSE:YUM)
Historical Stock Chart
From Apr 2024 to May 2024
Yum Brands (NYSE:YUM)
Historical Stock Chart
From May 2023 to May 2024