Yum! Brands, Inc. Completes Repricing of Approximately $2.0 Billion Term Loan B Facility
March 21 2017 - 4:15PM
Business Wire
Yum! Brands, Inc. (NYSE: YUM) (the “Company”) today announced
that certain subsidiaries that operate the Company’s KFC, Pizza Hut
and Taco Bell businesses have completed the repricing of the
existing approximately $2.0 billion Term Loan B under the Senior
Secured Credit Facility pursuant to an amendment to the Senior
Secured Credit Agreement.
The amendment reduces the interest rate applicable to the senior
secured term loan by 0.75% to adjusted LIBOR plus 2.00%, with a
rate stepdown to LIBOR plus 1.75%, in the event the Secured
Leverage Ratio is less than 1 to 1. The repricing is expected to
reduce annual cash interest by approximately $15 million. The
maturity date and all other material provisions under the Senior
Secured Credit Agreement remain unchanged.
The decrease in interest expense resulting from this repricing
is another positive step towards a more efficient cost structure
while maintaining an optimized capital structure of approximately
5.0x leverage.
Yum! Brands, Inc., based in Louisville, Kentucky, has over
43,500 restaurants in more than 135 countries and territories and
is one of the Aon Hewitt Top Companies for Leaders in North
America. The company’s restaurant brands – KFC, Pizza Hut and Taco
Bell – are the global leaders of the chicken, pizza and
Mexican-style food categories. Worldwide, the Yum! Brands system
opens over six new restaurants per day on average, making it a
leader in global retail development.
Cautionary Statement Regarding
Forward-Looking Statements
Certain statements in this communication contain
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. We intend all forward-looking statements to
be covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
can be identified by the fact that they do not relate strictly to
historical or current facts. These statements often include words
such as “may,” “will,” “estimate,” “intend,” “seek,” “expect,”
“project,” “anticipate,” “believe,” “plan,” “could,” “target,”
“predict,” “likely,” “should,” “forecast,” “outlook,” “model,”
“ongoing” or other similar terminology. Forward-looking statements
are based on our current expectations, estimates, assumptions or
projections concerning future results or events, including, without
limitation, the future earnings and performance as well as capital
structure of Yum! Brands or any of its businesses. Forward-looking
statements are neither predictions nor guarantees of future events,
circumstances or performance and are inherently subject to known
and unknown risks, uncertainties and assumptions that could cause
our actual results to differ materially from those indicated by
those statements. We cannot assure you that any of our
expectations, estimates or projections will be achieved. Factors
that could cause actual results and events to differ materially
from our expectations and forward-looking statements are, in
addition to those noted above, included in reports filed with the
SEC by Yum! Brands from time to time, including those discussed
under the heading “Risk Factors” in our most recently filed reports
on Form 10-K and 10-Q. You should not place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We are not undertaking to update any of these statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170321006526/en/
Yum! Brands, Inc.Analysts are invited to contact:Keith Siegner,
888-298-6986Vice President, Investor Relations, Corporate Strategy
and TreasurerorElizabeth Grenfell, 888-298-6986Director, Investor
RelationsorMembers of the media are invited to contact:Virginia
Ferguson, 502-874-8200Director, Public Relations
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