On July 31, 2026, Yum China Holdings entered into a Bridge Credit Agreement with HSBC Bank USA and Citibank N.A. to secure a senior unsecured term loan facility with aggregate commitments of CNH8,400,000,000. The proceeds are designated to finance the acquisition of KFC and Pizza Hut operations from Yum! Brands pursuant to a June 16, 2026 Membership Interest Purchase Agreement, as well as related transaction fees and expenses. The loan bears interest at CNH HIBOR plus an applicable margin, with an estimated annual rate of approximately 2%. Maturity is set for 180 days post-funding, extendable up to 364 days. The agreement includes standard covenants requiring an interest coverage ratio of not less than 3.00 and a consolidated leverage ratio of not greater than 2.50. Yum China Holdings operates in the restaurant industry, franchising and operating KFC, Pizza Hut, and Taco Bell brands in China.
