YUM! Brands, Inc. Prices $1.5 Billion Securitized Notes

The Notes will be issued by the Issuer in a privately placed securitization transaction pursuant to the Purchase Agreement. The Issuer owns substantially all of the U.S. franchising assets of Taco Bell and will use cash flows generated from these assets to make interest and principal payments on the Notes.

The Issuer expects to use the proceeds of the Notes for the repayment in full 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 TBC to pay certain transaction-related expenses, for general corporate purposes, for repayment of outstanding borrowings of the revolving credit facility of YUM! Brands, Inc. and may also be used to return capital to shareholders of YUM! Brands, Inc.

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 sold to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside the United States in accordance with Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act, any state or other jurisdiction’s securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdiction’s securities laws.

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

Category: Financial

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