Loan & DebtAug 6, 2026, 06:13 AM
Yum China Secures CNH8.4B Bridge Loan for Acquisition
AI Summary
Yum China Holdings, Inc. has entered into a Bridge Credit Agreement with HSBC Bank USA and Citibank N.A., Hong Kong Branch, for a senior unsecured term loan facility of CNH8.4 billion. The loan is intended to finance a previously announced acquisition and related expenses. The Term Loan has an initial maturity of 180 days, extendable up to 364 days, and bears interest based on CNH HIBOR plus a margin, estimated at 2% annually. The agreement includes customary affirmative and negative covenants, such as interest coverage and consolidated leverage ratio tests.
Key Highlights
- Yum China Holdings, Inc. entered into a Bridge Credit Agreement for CNH8.4 billion.
- The senior unsecured term loan facility is with HSBC Bank USA and Citibank N.A., Hong Kong Branch.
- Proceeds will finance the acquisition contemplated by a Membership Interest Purchase Agreement dated June 16, 2026.
- The Term Loan has an initial maturity of 180 days, extendable up to 364 days.
- Borrowings bear interest based on CNH HIBOR plus an applicable margin, estimated at approximately 2% per annum.
- Covenants include an interest coverage ratio of not less than 3.00 and a consolidated leverage ratio not greater than 2.50.
Price Impact
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