A $750 million bond deal is nudging levels for Tricon Global Restaurants' bank debt into the 99 range, which is up from the 97 range. The company a little more than a week ago, announced a bond deal that would pay down the bank debt. Dealers say $15 million had traded last week. Buyers and sellers could not be confirmed. "The credit has been doing well lately, but the coupon has always been very low and as a result has traded at a discount," a trader noted. Dealers say the fast food industry, like cable, is resilient in a weaker economy. Tricon, based in Louisville, Ky., owns KFC, Taco Bell, and Pizza Hut. Company officials did not comment by press time.
Tricon has a $5.25 billion five-year deal that expires in 2002. It priced at 62.5 basis points over LIBOR. J.P. Morgan Chase, Citibank, and Bank of America are the lead arrangers, according to Capital DATA Loanware.