Yum! Brands subsidiaries KFC Holding, Pizza Hut Holdings, and Taco Bell of America have started an offering of $500 million aggregate principal amount of senior notes due 2027.
The notes will be unsecured and will be guaranteed on a senior unsecured basis by the company and its domestic subsidiaries that guarantee the Issuers’ outstanding $2.1 billion senior unsecured notes and the Issuers’ senior secured credit facility. The company said net proceeds from the offering will be used to pay the fees and expenses of the offering, and to repay outstanding amounts under the issuers’ revolving credit facility. The remainder of the net proceeds will be used to make a cash distribution to the company to fund share repurchases, dividends and/or repayment of indebtedness.