Tricon Global Restaurant's bank notched up to 983/4 last week, from the 98 range. Dealers attributed the slight improvement to the company's $750 million bond deal. Early this month the company announced it would use the bond deal to pay down the bank debt (LMW, 4/8). Tricon, based in Louiseville, Ky., owns KFC, Taco Bell, and Pizza Hut.
Dealers say the fast food industry has fared well in a slowing economy. A dealer said the bond deal has sparked interest in the credit. "[The term loan] has always traded off around 98, and the revolver was a little cheaper. Then the bond deal got done, and it took out the term loan, so everything is trading up," he explained.
Tricon has a $5.25 billion five-year deal that expires in 2002. It is priced at LIBOR plus 5/8%. J.P. Morgan Chase, Citibank, and Bank of America are the lead arrangers, according to Capital DATA Loanware.