News
McDonald's launches $750M two-part note sale
January 13, 2009
Reuters: McDonald's Corp. has issued $750 million of debt in a two-part sale, according to Thomson Reuters service IFR.
The sale includes $400 million in 10-year notes and $350 million in 30-year bonds, both expected to yield 2.70 percentage points over U.S. Treasuries.
In related news, Fitch has assigned an 'A' rating to McDonald's unsecured note issuance. McDonald's current ratings are as follows:
- Long-term Issuer Default Rating (IDR) 'A'
- Bank credit facility 'A'
- Senior unsecured debt 'A'
- Subordinated debt 'A-'
- Short-term IDR 'F1'
The Rating Outlook is stable.
The ratings consider the currently difficult restaurant operating environment and weaker top-line growth for the industry. However, given McDonald's competitive position within the quick-service restaurant segment, the company's operating performance is expected to outperform the overall industry.
Year-to-date through Nov. 30, 2008, McDonald's global comparable same-store sales increased 7.1 percent with 9.3 percent growth in its Asia/Pacific, Middle East and Africa segment, 8.8 percent growth in Europe and 3.9 percent in the United States.
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