Yum! Brands Enters Material Definitive Agreement

TL;DR

YUM inked a new deal, could mean big $$.

AI Summary

On April 26, 2024, Yum! Brands, Inc. filed an 8-K report detailing a material definitive agreement. The filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. Specific details regarding the agreement and financial obligations were not fully disclosed in the provided text, but the filing is categorized under 'Entry into a Material Definitive Agreement' and 'Creation of a Direct Financial Obligation'.

Why It Matters

This filing signals a significant new contract or financial commitment for Yum! Brands, which could impact its future operations and financial standing.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and potential financial obligations, which inherently carry some level of risk until more details are disclosed.

Key Players & Entities

• YUM! BRANDS, INC. (company) — Registrant
• 0001104659-24-053083 (document_id) — Accession Number
• April 26, 2024 (date) — Date of Report
• 1-13163 (company_id) — Commission file number
• North Carolina (jurisdiction) — State of incorporation
• 13-3951308 (tax_id) — I.R.S. Employer Identification Number

FAQ

Key Financial Figures

• $713 million — y refinanced its existing approximately $713 million term loan A facility and $1.25 billion
• $1.25 billion — y $713 million term loan A facility and $1.25 billion revolving facility through the issuance
• $500 million — ving facility through the issuance of a $500 million term loan A (the "Term A Loan") and a $
• $1.5 billion — n term loan A (the "Term A Loan") and a $1.5 billion revolving credit facility (the "Revolvi
• $250 million — wers' existing term loan B if more than $250 million of such term loan B remains outstanding

Filing Documents

• tm2412499d1_8k.htm (8-K) — 28KB
• tm2412499d1_10-1.htm (EX-10.1) — 1537KB
• 0001104659-24-053083.txt ( ) — 2047KB
• yum-20240426.xsd (EX-101.SCH) — 3KB
• yum-20240426_lab.xml (EX-101.LAB) — 33KB
• yum-20240426_pre.xml (EX-101.PRE) — 22KB
• tm2412499d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On April 26, 2024, Pizza Hut Holdings, LLC, KFC Holding Co. and Taco Bell of America, LLC (collectively, the "Borrowers"), each a wholly owned subsidiary of YUM! Brands, Inc. ("YUM" or the "Company"), entered into a Refinancing Amendment No. 7 (the "Amendment") to the Credit Agreement, dated as of June 16, 2016 (as amended by Refinancing Agreement No. 1 dated as of March 21, 2017, Refinancing Amendment No. 2 dated as of June 7, 2017, Refinancing Amendment No. 3 dated as of April 3, 2018, Refinancing Amendment No. 4 dated as of March 15, 2021, Amendment No. 5 dated as of January 1, 2022 and Amendment No. 6 dated as of June 28, 2023, and as further amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), among the Borrowers, JPMorgan Chase Bank, N.A., as Collateral Agent, Swing Line Lender, an L/C Issuer and Administrative Agent, and the Lenders from time to time party thereto, pursuant to which the Company refinanced its existing approximately $713 million term loan A facility and $1.25 billion revolving facility through the issuance of a $500 million term loan A (the "Term A Loan") and a $1.5 billion revolving credit facility (the "Revolving Facility"). The Term A Loan and the Revolving Facility will mature on the earliest of (i) April 26, 2029, (ii) the date that is 91 days prior to the maturity of the Borrowers' existing term loan B if more than $250 million of such term loan B remains outstanding as of such date and (iii) the date that is 91 days prior to the maturity of the Borrowers' existing senior notes if more than $250 million of such senior notes remains outstanding as of such date. The interest rates applicable to the Term A Loan and to borrowings under the Revolving Facility are unchanged by the Amendment, and will continue to be based on either Adjusted Term SOFR or the base rate, as determined by the Borrowers, plus a spread based on the Borrowers' total le

03 Creation of a Direct Financial Obligation or an Obligation under Off-Balance Sheet Arrangement of a

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is hereby incorporated by reference into this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. Exhibit No. Description 10.1 Refinancing Amendment No. 7, dated as of April 26, 2024, to Credit Agreement dated as of June 16, 2016 among Pizza Hut Holdings, LLC, KFC Holding Co. and Taco Bell of America, LLC, as borrowers, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Collateral Agent, Swing Line Lender, an L/C Issuer and Administrative Agent for the Lenders. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. YUM! BRANDS, INC. (Registrant) Date: April 26, 2024 /s/ Chris Turner Chris Turner Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR