Jollibee to raise P8B

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Jollibee Foods Corp. looks to raise P8 billion through the sale of preferred shares at an offer price of P1,000 per share.

The company is eyeing an initial sale of 5 million preferred shares, with an additional 5 million preferred shares covering the oversubscription option.

“These will be cumulative, non-voting, nonparticipating, non-convertible, redeemable, peso-denominated perpetual preferred shares,” the company said.

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The share sale is the second tranche of its 20 million preferred shares shelf registration approved by the Securities and Exchange Commission in 2021, Jollibee added.

Jollibee said a portion of the net proceeds from the offering will be used to refinance financial obligations including callable Series A preferred shares due in October 2024.

The Series A preferred shares is part of the first tranche of the shelf-registered securities – 3 million preferred shares carrying a dividend rate of 3.2821 percent.

The tranche also includes the 9 million Series B preferred shares that carry a dividend rate of 4.2405 percent.

“Jollibee is undertaking this funding transaction to maintain strong capital structure, robust leverage position, and optimize liquidity by managing maturities of financial obligations,” it said.

Jollibee tapped BPI Capital Corp., Chinabank Capital Corp. and BDO Capital and Investment Corp. as underwriters. – Ruelle Castro

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