LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today announced that it intends to offer, subject to market and other customary conditions, $1,050 million in aggregate principal amount of senior notes (the “Notes”) in an offering registered under the Securities Act of 1933, as amended (the “Note Offering”).
The company intends to use the proceeds from the Note Offering, together with cash on hand, to fund the redemption of all of the outstanding $1,050 million aggregate principal amount of Senior Notes due 2024 (the “2024 Senior Subsidiary Notes”) issued by its wholly-owned subsidiaries, KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC (the “Issuers”) at a redemption price of 102.50% of the principal amount redeemed plus accrued and unpaid interest to the date of redemption. The Issuers have issued a conditional notice of redemption to holders of the 2024 Senior Subsidiary Notes. The redemption of the 2024 Senior Subsidiary Notes is contingent upon the closing of the Note Offering.
The Note Offering is being made only by means of a prospectus supplement and an accompanying base prospectus. Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the Note Offering may be obtained from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing Prospectusfirstname.lastname@example.org.
The company filed a Registration Statement on Form S-3ASR, which was effective upon filing on August 24, 2020, including a base prospectus dated August 24, 2020, and a preliminary prospectus supplement dated September 9, 2020, to which this communication relates. Copies of the Registration Statement on Form S-3ASR, the base prospectus and the preliminary prospectus supplement can be accessed through the Securities and Exchange Commission’s website at www.sec.gov.
This press release is for informational purposes only and shall not constitute (i) an offer to sell or the solicitation of an offer to buy the Notes or any other securities or (ii) an offer to buy, or a notice of redemption with respect to, the 2024 Senior Subsidiary Notes or any other securities. The Note Offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful.
This press release includes “forward-looking statements,” including with respect to the proposed Note Offering and the anticipated redemption of the 2024 Senior Subsidiary Notes. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control that could cause actual results to differ materially from those described in such statements. Such risks and uncertainties include, but are not limited to, whether the company will in fact offer the Notes or consummate the Note Offering, which is subject to various conditions, and the anticipated use of the proceeds of the Note Offering. The company can give no assurance that the expectations expressed in this press release will prove correct, and actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Any forward looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.