Yum! Brands, Inc. (NYSE: YUM) today announced the preliminary results of its previously announced cash tender offers to purchase up to $525 million aggregate principal amount of five series of its outstanding debt securities identified in the table below (collectively, the “Notes”). The terms and conditions of the tender offers are described in the Offer to Purchase, dated October 22, 2013 (the “Offer to Purchase”), and the related Letter of Transmittal.
According to information provided by D.F. King & Co., Inc., the Tender Agent and Information Agent for the tender offers, $369,867,000 aggregate principal amount of the 6.875% Senior Notes due 2037, $351,614,000 aggregate principal amount of the 6.250% Senior Notes due 2018, $145,884,000 aggregate principal amount of the 6.250% Senior Notes due 2016, $61,704,000 aggregate principal amount of the 5.300% Senior Notes due 2019, and $126,828,000 aggregate principal amount of the 4.250% Senior Notes due 2015 were validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on November 4, 2013 (the “Early Tender Time”). Tendered Notes may not be withdrawn after the Early Tender Time.
Yum! Brands also announced that it has increased the combined aggregate principal amount of the Notes that it is offering to purchase in the tender offers from $525 million to $550 million (as increased, the “Tender Cap”). Additionally, the Tender Sub-Cap for Yum! Brands’ offer to purchase its 6.875% Senior Notes due 2037 is being increased from $250 million to $275 million. Except for such increases, all other terms and conditions of the tender offers, as previously announced, remain unchanged.
The total aggregate principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Time was $1,055,897,000, which amount exceeds the Tender Cap. Since Yum! Brands will accept for payment only such portion of the tendered Notes that does not result in it purchasing Notes with an aggregate principal amount above the Tender Cap and, in the case of the Notes with Acceptance Priority Level 1, above the Tender Sub-Cap of $275 million, Yum! Brands will purchase a portion of the validly tendered Notes with Acceptance Priority Levels 1 and 2 and will not purchase any Notes with Acceptance Priority Levels 3, 4, or 5, in accordance with the terms of the tender offers set forth in the Offer to Purchase. Assuming that the conditions to the tender offers are satisfied or waived, tendered Notes with Acceptance Priority Levels 1 and 2 will be accepted for purchase on a pro rata basis as described in the Offer to Purchase, such that the aggregate principal amount of the Notes accepted in the tender offers equals the Tender Cap and the aggregate principal amount of 6.875% Senior Notes due 2037 accepted in the applicable tender offer equals the Tender Sub-Cap of $275 million.
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