Jollibee raises $600 M from notes offering

Published June 19, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Jollibee Foods Corporation (JFC), the largest food service company in the Philippines and one of the largest in Asia, has raised US$600 million from the offering of US dollar-denominated guaranteed senior notes.

Manila Bulletin
Manila Bulletin

In a disclosure to the Philippine Stock Exchange, the firm said it has successfully priced a US$300 million 5.5-year and US$300-million 10-year Reg S only dual tranche US dollar-denominated guaranteed senior notes offering.

The 5.5-year and 10-year notes have with a coupon rate of 4.125 percent and 4.750 percent, respectively, payable semi-annually. The Notes will be issued by Jollibee Worldwide Pte. Ltd., a wholly owned subsidiary of JFC.

This offering represents the second international capital markets transaction from JFC, following the successful issuance of its US$600 million senior perpetual capital securities in January 2020.

This deal also represents the third time that JFC has tapped the capital markets since its Initial Public Offering in 1993.

The Notes are unrated and will be listed on the Singapore Exchange Securities Trading Limited.

Proceeds from the offering will be used for general corporate purposes, intended as a precautionary measure from unforeseen eventualities that may be caused by the COVID-19 pandemic, as well as fund initiatives of the JFC and its group of companies.

JFC said the Group has sufficient cash (P26.5 billion or US$522.3 million as of March 31, 2020) and liquidity to support its operations on a continuing basis and meet all its obligations.

Citigroup, Goldman Sachs, J.P. Morgan, and Morgan Stanley acted as Joint Global Coordinators, and Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, BPI Capital Corporation, Credit Suisse and UBS acted as Joint Lead Managers and Joint Bookrunners.