Certain subsidiaries of Yum! Brands that operate the company’s KFC, Pizza Hut and Taco Bell businesses completed the refinancing of an existing $713 million term loan A facility and $1.25 billion revolving facility through the issuance of a $500 million term loan A and a $1.5 billion revolving credit facility pursuant to an amendment to an underlying credit agreement. According to an 8K filed with the SEC, JPMorgan Chase is the collateral agent, swing line lender and administrative agent for the facilities.

The new term 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 total size of the bank credit facility (excluding the borrowers’ existing $1.46 billion term loan B) remains roughly $2 billion and the transaction does not add any additional net new debt to the company’s balance sheet.

The interest rates applicable to the new term loan and to borrowings under the new revolving facility have not changed from the existing facilities. The interest rates will be based on either adjusted term SOFR or the base rate, as determined by the borrowers, plus a spread based on the borrowers’ total leverage ratio. Adjusted term SOFR refers to one month term SOFR plus 0.11448%, three-month term SOFR plus 0.26161% or six-month term SOFR plus 0.42826%, as selected by the borrowers. Such spread based on the borrowers’ total leverage ratio is initially 0.75% for adjusted term SOFR loans and 0% for base rate loans, and ranges between 0.75% and 1.5% for adjusted term SOFR loans and between 0% and 0.5% for base rate loans based on the total leverage ratio. The “base rate” means the greatest of (a) the Prime Rate then in effect, (b) the federal funds rate then in effect plus 0.5% and (c) the rate for one month adjusted term SOFR rate then in effect plus 1%. The new term loan will amortize at 2.5% per annum during the second and third years following closing and at 5% per annum during the fourth and fifth years following closing.

Yum! Brands will use proceeds from the issuance to repay the existing facilities and pay associated transaction fees and expenses, and for general corporate purposes.