A $1bn whole business securitization to fund LongRange Capital’s buyout of Pizza Hut is on track to price next week, according to 9fin sources.
Initial price talk for the largest tranche in the deal, the $600m-minimum Class A-2-I notes, is in the high 200bps to 300bps, sources said. There is a pre-placed Class A-2-II of notes, with allocations to be determined, and a $100m A-1 variable funding note that is not offered. All tranches in the deal are expected to carry BBB ratings from S&P and KBRA.
The 144a deal, known as HUT 2026-1, involves a host of big sellside names, with UBS Investment Bank acting as sole structuring advisor and left lead book runner. Barclays, BofA Securities, Guggenheim Securities, and Rabo Securities are working as joint active bookrunners while Baird and KKR Capital Markets are slotted in as co-managers.
LongRange acquired Pizza Hut, excluding its mainland China business, from Yum! Brands in September for $1.5bn, with a potential earn-out of up to $75m by 2030. That deal was funded in part with a $810m term loan, which the WBS deal proceeds are meant to repay and refinance. Excess proceeds would go toward future strategic...
