Yum! Brands wraps $1.5B term loan for refinancing at tight end of talk; terms

Investors have received allocations of Yum! Brands Inc. $1.5 billion, seven-year term loan B (L+175, 0% Libor floor) that priced at the tight end of price talk at an original issue discount of 99.75 via lead arranger J.P. Morgan according to sources. The term loan freed to a 100/100.5 market. Proceeds from the transaction will be used to refinance the issuer's existing covenant-lite first-lien term loan due April 2025 (L+175, 0% Libor floor) alongside a roughly $400 million paydown of the facility. Financing will also include a $1.25 billion revolving credit facility and a $750 million term loan, according to a S&P Global Ratings report. The borrowers are Pizza Hut Holdings LLC, KFC Holdings Co. and Taco Bell of America LLC. Yum! Brands operates and franchises quick-service restaurants in four segments: KFC, Pizza Hut, Taco Bell and Habit Burger. Terms:

Article updated at 5:38 p.m. ET on March 18 to add arrangers.