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 a report by Bloomberg.

The proposed financing will reportedly take the form of a whole-business securitisation, backed by franchise agreements, royalty payments, advertising fees, vendor rebates and intellectual property. The offering includes at least $600m of bonds alongside a separately marketed tranche, with an expected average life of approximately 4.8 years.

The bonds are expected to price at yields between two and three percentage points above benchmark rates and have received BBB ratings from S&P Global Ratings and Kroll Bond Rating Agency. Proceeds will primarily refinance acquisition-related debt, cover transaction expenses and fund an interest reserve, with any remaining capital available for strategic investments in the US and Canada.

Pizza Hut operates a predominantly franchised model, with approximately 99% of restaurants run by franchisees. Its US and Canadian network comprises more than 6,675 locations, generating approximately $5.4bn in systemwide sales over the 12 months to the second quarter of 2026. UBS is leading the bond offering, with Barclays, Bank of America, Guggenheim Securities and Rabo Securities among the bookrunners.