Yum Brands, the parent of fast food chains including KFC and Taco Bell, said it will offer more than $2bn in new bonds, becoming the latest junk-rated company to tap the debt market.

The new debt issuance, which includes $2.3bn in senior unsecured notes as well as a new senior secured credit facility of the same size, highlights the trend of groups accessing the debt market while interest rates remain low and investors are hungry for yield. Indeed, PC-maker Dell sold $20bn in debt on Tuesday in the fourth-largest bond sale on record.

Kentucky-based Yum said the new debt would be used to fund the return of capital to shareholders, to repay borrowings under an existing revolving credit facility, pay associated transaction fees and expenses and to support general corporate purposes.

Yum said the move comes as it targets leverage of five-times earnings before interest taxes depreciation and amortization and looks to return $6.2bn in capital to shareholders before the separation of its China business by the end of 2016.

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