Yum! Brands $750 Million Senior Notes Offering

Davis Polk advised the representative of the initial purchasers on a Rule 144A/Regulation S offering by KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC of $750 million aggregate principal amount of 4.75% senior notes due 2027. The issuers are domestic subsidiaries of Yum! Brands, Inc.

Proceeds from the senior notes will be used to repay amounts outstanding under the issuers’ revolving credit facility and make a cash distribution to Yum! Brands to fund share repurchases, dividends to shareholders and repayment of other indebtedness.

Yum! Brands (NYSE: YUM), based in Louisville, Kentucky, is one of the world’s largest restaurant companies with over 43,000 restaurants in more than 130 countries and territories. Yum! Brands operates the licensed brands of Taco Bell, KFC and Pizza Hut.

The Davis Polk capital markets team included partner Michael Kaplan and associates Ravi P. Ramchandani, Evan Leitner and Bria J.M. Cunningham. The intellectual property and technology team included partner Frank J. Azzopardi and associate Paul S. Lee. The tax team included partner David H. Schnabel and associates Omer Harel and Erin Harvey. Associate Britt Mosman provided OFAC/sanctions advice. Members of the Davis Polk team are based in the New York, Washington DC and London offices.