YUM · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

YUM BRANDS INC · 2026-08-05 · Importance 56 · Surprise 24 · In source text

YUM had $12.336 billion of debt obligations at June 30, 2026, including $2.823 billion classified as short-term borrowings and $9.462 billion of long-term debt. The Term Loan A and Revolving Facility mature on the earliest of April 26, 2029, or earlier dates tied to the March 2028 Term Loan B and June 2027 Subsidiary Senior Unsecured Notes maturities. Because $750 million of Subsidiary Senior Unsecured Notes remained outstanding, the facilities become due within 12 months unless YUM pays or refinances at least $500 million of those notes by the applicable 91-day deadline before June 1, 2027. Interest-rate swaps fix rates on $1.5 billion of borrowings through March 2028, with a 5.09% current rate on the swapped portion of the Term Loan B Facility.

Key facts

• Given $750 million in Subsidiary Senior Unsecured Notes outstanding as of June 30, 2026, the maturity date of the Term Loan A Facility and the Revolving Facility will occur less than 12 months from the balance sheet date unless the Company has paid or refinanced at least $500 million of the Subsidiary Senior Unsecured Notes 91 days prior to June 1, 2027. source
• If the Company has not paid nor refinanced at least $500 million of the Subsidiary Senior Unsecured Notes 91 days prior to June 1, 2027, the maturity date of the Term Loan A Facility and Revolving Facility will occur less than 12 months from the balance sheet date source
• The Company has utilized interest rate swaps to fix the interest rate on $1.5 billion of borrowings through March 2028 source
• The company expects to refinance the $750 million of existing Subsidiary Senior Unsecured Notes before 91 days prior to June 1, 2027 and the table reflects the April 26, 2029 anticipated repayment date for Term Loan A and the Revolving Facility. source
• As of June 30, 2026, approximately 96% of the company's $11.5 billion of total debt outstanding, excluding the Revolving Facility balance, finance leases and debt issuance costs and discounts, is fixed (including the impact of interest rate swaps) with an effective overall interest rate of approximately 4.5%. source
• A Term Loan A Facility and the Revolving Facility will mature on the earliest of (i) April 26, 2029, (ii) 91 days prior to March 15, 2028 maturity of Term Loan B if more than $250 million remains outstanding as of such date, or (iii) 91 days prior to June 1, 2027 maturity of Subsidiary Senior Unsecured Notes if more than $250 million remains outstanding as of such date. source
• Borrowings under the Revolving Facility in 2026 had original maturities of three months or less. source
• There were $750 million of Subsidiary Senior Unsecured Notes outstanding at June 30, 2026 source

Impact estimates