topstockalerts
Nov 11, 3:07 AM
Pizza Hut is seeking to raise approximately
$1 billion through bonds backed by its franchise agreements and related fees to help finance its acquisition by private-equity firm LongRange Capital LLC, according to Bloomberg. The asset-backed securities, structured as whole-business securitizations, are expected to be marketed next week, with at least
$600 million included in the initial offering.
The bonds will have an average life of approximately 4.8 years and are expected to offer yields 2 to 3 percentage points above benchmark rates. Proceeds will be used to refinance acquisition-related financing from LongRange Capital's purchase of Pizza Hut from Yum! Brands, cover transaction expenses and establish an interest reserve. Any remaining funds could support strategic investments in the U.S. and Canadian businesses.
$YUM
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