Pizza Hut is preparing to raise approximately $1bn through an asset-backed bond offering to refinance debt associated with its acquisition by private equity firm LongRange Capital, according to Private Equity Wire. The plan was reported by Bloomberg and published by Private Equity Wire on November 11, 2026. The proposed financing is expected to take the form of a whole-business securitisation.
Structure and collateral
The whole-business securitisation is expected to be backed by franchise agreements, royalty payments, advertising fees, vendor rebates and intellectual property, according to Private Equity Wire. The offering includes at least $600m of bonds alongside a separately marketed tranche. The expected average life of the financing is approximately 4.8 years.
The bonds are expected to price at yields between two and three percentage points above benchmark rates, according to Private Equity Wire. The bonds have received BBB ratings from S&P Global Ratings and Kroll Bond Rating Agency.
Use of proceeds
Proceeds are expected to primarily refinance acquisition-related debt associated with the LongRange Capital buyout. Proceeds are also expected to cover transaction expenses and fund an interest reserve. Any remaining capital is expected to be available for strategic investments in the US and Canada, according to Private Equity Wire.
Business footprint and operating model
Pizza Hut operates a predominantly franchised model, with approximately 99% of restaurants run by franchisees, according to Private Equity Wire. Its US and Canadian network comprises more than 6,675 locations. The US and Canada system generated approximately $5.4bn in systemwide sales over the 12 months to the second quarter of 2026.
Banks on the transaction
UBS is leading the bond offering. Barclays, Bank of America, Guggenheim Securities and Rabo Securities are among the bookrunners, according to Private Equity Wire.
