01—Abstract
Summary
Summary of the 8-K filed September 10, 2025. Cited figures are marked; the original filing is the authoritative source.
On September 9, 2025, YUM!
Brands, Inc. and certain affiliates entered into a Purchase Agreement under which Taco Bell Funding, LLC, a special purpose subsidiary of the Company, agreed to issue and sell $1,000 milliona of Series 2025-1 4.821% Fixed Rate Senior Secured Notes, Class A-2-I, and $500 million of Series 2025-1 5.049% Fixed Rate Senior Secured Notes, Class A-2-II, for a total of $1.5 billion. The notes are offered in a private securitization transaction to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, and have not been registered under the Securities Act. The issuer owns substantially all of the U.S. franchising assets of Taco Bell and will use cash flows from those assets to pay interest and principal.
Interest is payable quarterly. The legal final maturity is in August 2055, with anticipated repayment dates of August 2030 for the Class A-2-I Notes and August 2032 for the Class A-2-II Notes. The closing is expected on September 24, 2025, subject to customary closing conditions.
Net proceeds will first repay in full the issuer's outstanding Series 2016-1 Fixed Rate Senior Secured Notes, Class A-2-III. The remaining proceeds will be distributed to Taco Bell Corp. to pay transaction expenses, for general corporate purposes, to repay revolving credit facility borrowings of YUM!
Brands, Inc., and may also be used to return capital to YUM! Brands shareholders.
02—Key points
Key Highlights
- Taco Bell Funding, LLC agreed to issue $1.5 billion in total Series 2025-1 senior secured notes: $1,000 million Class A-2-I at 4.821% and $500 million Class A-2-II at 5.049%.
- The notes are secured by the issuer's ownership of substantially all U.S. franchising assets of Taco Bell, with cash flows from those assets used to service the notes.
- Legal final maturity is August 2055; anticipated repayment dates are August 2030 (Class A-2-I) and August 2032 (Class A-2-II).
- Proceeds will first repay in full the Series 2016-1 Class A-2-III Notes of the issuer.
- Remaining net proceeds go to Taco Bell Corp. for transaction expenses, general corporate purposes, repayment of YUM! Brands revolving credit facility borrowings, and possible return of capital to YUM! Brands shareholders.
- The offering is a private placement under Rule 144A and Regulation S, so the notes are not registered under the Securities Act.
- Closing is expected on September 24, 2025, subject to various closing conditions.
03—Questions
Frequently Asked Questions
How much debt is being issued, and at what interest rates?
Taco Bell Funding, LLC agreed to issue $1,000 million of Series 2025-1 4.821% Fixed Rate Senior Secured Notes, Class A-2-I, and $500 million of Series 2025-1 5.049% Fixed Rate Senior Secured Notes, Class A-2-II, totaling $1.5 billion.
What assets secure the notes?
The issuer owns substantially all of the U.S. franchising assets of Taco Bell and will use the cash flows generated from those assets to make interest and principal payments on the notes.
When do the notes mature and when are they expected to be repaid?
The legal final maturity is in August 2055. The anticipated repayment dates are August 2030 for the Class A-2-I Notes and August 2032 for the Class A-2-II Notes.
How will the proceeds be used?
The issuer expects to use the proceeds to repay in full its outstanding Series 2016-1 Fixed Rate Senior Secured Notes, Class A-2-III. The remaining net proceeds will be distributed to Taco Bell Corp. to pay transaction-related expenses, for general corporate purposes, to repay revolving credit facility borrowings of YUM! Brands, Inc., and may also be used to return capital to YUM! Brands shareholders.
When is the transaction expected to close?
The closing of the sale of the notes is expected on September 24, 2025, subject to the satisfaction of various closing conditions.
04—Continue