Pizza Hut targets $1bn securitisation to refinance LongRange buyout
Pizza Hut is preparing to raise approximately $1bn through an asset-backed bond offering to refinance debt associated with its acquisition by private equity firm LongRange Capital, according to a report by Bloomberg. The proposed financing will reportedly take the form of a whole-business securitisation, backed by franchise agreements, royalty payments, advertising fees, vendor rebates and…
Pizza Hut plans to raise around $1 billion through a bond offering to refinance debt linked to its acquisition by LongRange Capital, as reported by Bloomberg. The financing, which will be a whole-business securitisation, is backed by various revenue streams such as franchise agreements, royalty payments, advertising fees, vendor rebates, and intellectual property.
The bond issuance includes at least $600 million in bonds, along with a separately marketed tranche, and is expected to have an average maturity of about 4.8 years. The bonds are anticipated to have yields between two and three percentage points higher than benchmark rates and have received a BBB rating from S&P Global Ratings and Kroll Bond Rating Agency.
The funds raised will primarily be used to refinance acquisition-related debt, cover transaction expenses, and establish an interest reserve. Any remaining capital will be allocated towards strategic investments in the United States and Canada. Pizza Hut, which primarily operates a franchised model with about 99% of its restaurants managed by franchisees, operates a US and Canadian network of over 6,675 locations that generated approximately $5.4 billion in systemwide sales over the 12 months ending in the second quarter of 2026.
UBS is leading the bond offering, with assistance from Barclays, Bank of America, Guggenheim Securities, and Rabo Securities as the bookrunners.
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