Yum! Brands, Inc. Announces Closing of New Senior Secured Credit Facilities and Notes Offering

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 closed the previously announced $2.5 billion new Senior Secured Credit Facilities and $2.1 billion senior unsecured notes offering. The new Senior Secured Credit Facilities consist of a $500 million 5-year term loan A facility and a $2.0 billion 7-year term loan B facility, along with an undrawn $1.0 billion 5-year revolving credit facility. The senior unsecured notes offering consists of $1.05 billion aggregate principal amount of 5.00% Senior Notes due 2024 and $1.05 billion aggregate principal amount of 5.25% Senior Notes due 2026 (collectively, the “Notes”).

Net proceeds from the new Senior Secured Credit Facilities and the Notes offering will be used to fund a return of capital to shareholders, to repay borrowings under the Company’s existing revolving credit facility, to pay associated transaction fees and expenses, and for general corporate purposes.

The Notes have not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements. Accordingly, the Notes were offered and sold in the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions outside the United States in accordance with Regulation S under the Securities Act. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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