Overview
Pizza Hut, the pizza restaurant chain owned by Yum! Brands, is preparing to issue approximately $1 billion of asset‑backed securities, structured as a whole‑business securitisation, to finance the buyout of the brand by private‑equity firm LongRange Capital LLC.
Offering Details
- At least $600 million of the bonds are scheduled for sale next week, with a further tranche to be offered subsequently.
- The bonds are backed by Pizza Hut’s franchise agreements, royalty and fee streams, vendor rebates, advertising fees and intellectual‑property rights in the United States, Canada and selected other territories.
- The securities have an average maturity of about 4.8 years and are expected to be priced at a yield 2‑3 percentage points above prevailing benchmark rates.
Use of Proceeds
Proceeds will be used to (i) repay financing that was incurred to fund LongRange Capital’s acquisition of Pizza Hut from Yum! Brands Inc., (ii) cover transaction expenses, (iii) establish an interest reserve, and (iv) any remaining amount will be allocated to strategic investments in the United States and Canada.
Business Context
- Pizza Hut operates a predominantly franchised model, with roughly 99 % of its restaurants run by franchisees.
- The U.S. and Canadian system comprises more than 6,675 franchised outlets, which generated approximately $5.4 billion in system‑wide sales over the twelve‑month period ending the second quarter of 2026.
Advisory and Book‑Running
UBS Group AG is acting as the sole structuring adviser and lead bookrunner. Barclays Plc, Bank of America Corp., Guggenheim Securities and Rabo Securities are participating as active bookrunners.