Yum Bondholders Face Rising Leverage, Junk Status in Split
Yum Brands to Separate China Business, Here's Why
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Yum! Brands Inc.’s bondholders are feeling slighted after the fast-food company moved to separate its China business from the U.S. parent, leaving it with less revenue to service $2.65 billion of debt.
The company’s bonds plunged Tuesday after it announced Yum! China will become a virtually debt-free franchisee, with exclusive rights to the KFC, Pizza Hut and Taco Bell brands.