Jollibee Foods Corp. is looking to raise as much as $300 million from its Regulation S-only corporate notes issuance, which it announced Monday as part of its debt restructuring of $396 million in total unsecured guaranteed perpetual notes that matured in January.
Jollibee yesterday said it mandated JP Morgan Securities Asia Private Limited (JP Morgan), Morgan Stanley Asia (Singapore) Pte. (Morgan Stanley), BPI Capital Corp., The Hongkong and Shanghai Banking Corporation Limited, and Singapore Branch (HSBC) to facilitate a five-year dollar-denominated senior unsecured guaranteed notes for the company through the US’ Regulation S offering and private placement rule.
The company’s Chief Finance Officer Richard Shin told reporters in a briefing yesterday the debt issue will allow Jollibee to convert the perpetual debt to senior bonds, which are “more cost-effective.”
“We want to do the best for our shareholders by getting the lowest cost of bonds,” he said.
According to Shin, the company has initially converted the $96 million portion of the loan to a peso-denominated debt on a “very favorable rate term loans onshore.”
“We’re very fortunate because we have a lot of great banking partners who stepped up to finance us. So we got very attractive rates, and we’re happy with that. We also want to contribute back to the local financial system,” he said.
Shin said the $300 million balance will be priced on Tuesday. However, the company has yet to release an official statement on the debt’s terms.
“The $300 million is almost like an unwritten, or maybe it’s written, minimum if you want to be listed in indexes,” he said.
Shin said the debt issue attracts local and foreign investors “because we’re a very low credit risk company.”
The fundraising follows the release of Jollibee’s 2024 full-year results. Two weeks ago, it reported attributable net income of P10.32 billion, up 17.7 percent from P8.77 billion the prior year.
Revenue grew 10.6 percent to P269.94 billion from P244.11 billion in 2023.
The company posted a 13 percent increase in systemwide sales at P390.28 billion from P345.32 billion.
Same-store sales increased 7.5 percent in the Philippines and 2.8 percent overseas.
