YUM! Brands Subsidiary Taco Bell Funding To Issue $1.5 Bln In Senior Secured Notes

YUM! Brands

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(RTTNews) - YUM! Brands Inc. (YUM), the parent company of KFC, Pizza Hut and Taco Bell, announced that it and certain affiliates have entered into a purchase agreement under which a special purpose subsidiary of Taco Bell Corp. named Taco Bell Funding, LLC has agreed to issue and sell $1 billion aggregate principal amount of its Series 2025-1 4.821% Fixed Rate Senior Secured Notes, Class A-2-I and $500 million aggregate principal amount of its Series 2025-1 5.049% Fixed Rate Senior Secured Notes, Class A-2-II. Interest will be payable on the Notes quarterly.

The company noted that the legal final maturity date of the Notes will be in August 2055, but the anticipated repayment dates of the Series 2025-1 Class A-2-I Notes and the Series 2025-1 Class A-2-II Notes will be in August 2030 and August 2032, respectively.

Taco Bell Funding 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 Taco Bell Corp. 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.