Yum China Holdings has entered into a senior unsecured bridge credit agreement for CNH 8.40 billion, arranged by HSBC Bank USA and Citibank N.A., Hong Kong Branch, with HSBC acting as administrative agent. The company disclosed the transaction in a Form 8-K filed with the U.S. Securities and Exchange Commission on 6 August 2026.

The facility is structured as a single-draw term loan available until the earliest of 16 November 2026, the closing of Yum China’s planned acquisition of Willow Glade Investments (the “Pizza Hut Target”), or termination events defined in the related purchase agreement. Once drawn, the loan matures 180 days after funding, with optional extensions—one or multiple—of one or three months each, up to a maximum tenure of 364 days.

Pricing is set at the CNH Hong Kong Interbank Offered Rate (CNH HIBOR) plus an initial margin of 0.40%, stepping up to 0.45% after 180 days and to 0.50% after 270 days. Yum China estimates the annual interest cost at about 2%. Interest is payable monthly or quarterly in arrears, and overdue amounts accrue at CNH HIBOR plus 2%.

Proceeds are earmarked to finance the previously announced acquisition of the Pizza Hut China franchise from Yum! Brands, as well as associated fees and expenses. Voluntary prepayments may be made at any time without penalty, subject to customary breakage costs. Mandatory prepayments are required from net cash proceeds of specified asset sales, debt or equity issuances, or upon certain dual-delisting or prolonged trading suspension events affecting Yum China’s shares.

Key financial covenants include maintenance of a quarterly interest coverage ratio of at least 3.00 and a consolidated leverage ratio not exceeding 2.50. The agreement also contains customary restrictions on liens, mergers, and asset dispositions, along with standard events of default and provisions for accelerated repayment.

Yum China notes it maintains other banking relationships with the participating lenders. The company’s board of directors approved the transaction, and the 8-K filing forms part of its ongoing compliance with both U.S. and Hong Kong listing requirements.