Ask any Filipino about Jollibee
and there is no doubt that not only would they know about it, they most
certainly have eaten at one of its branches and they would choose it first over
even international fast-food chains like McDonald’s. Not only has Jollibee
Foods Corporation (JFC) proven its marketing mettle against global competition
by opening branches around the world, it has also been acquiring both local and
overseas food franchises to complement its main Jollibee brand. One surprise purchase
from last year was the American coffee chain and Starbucks competitor, The Coffee
Bean and Tea Leaf. This acquisition required substantial purchase loans, which JFC
has plans to pay.
The Manila Bulletin has it that Jollibee Foods Corporation is
looking to refinance its purchase loans used for acquiring The Coffee Bean and
Tea Leaf (CBTL) last 2019 by issuing fixed income securities via Jollibee
Worldwide Pte. Ltd. (JWPL), in order to raise capital. This was revealed in a
disclosure by JFC to the Philippine Stock Exchange. With regards to the planned
issuance of income securities, the country’s biggest fast-food company gave the
mandate of joint global coordinators to J.P. Morgan SEA Ltd. and Citigroup Global
Markets Singapore Pte. Ltd.
To this end, Citigroup and J.P.
Morgan will do fixed investor meetings for parties interested in JWPL income
securities starting on January 13, at Singapore, Hong Kong and London. They
will be working together with Mizuho Securities and Credit Suisse who have also
been named joint book-runners and joint lead managers to oversee the securities
offering. Jollibee notes that the proceeds that will be gotten from these
investor meetings will go to refinance short-term debts that were gained from
the acquisition of CBTL, which was finalized in September last year. Anything
beyond that will then be funneled into funding initiatives for Jollibee’s general
corporate purposes.
The Coffee Bean and Tea Leaf,
headquartered in Los Angeles, was acquired in full by Jollibee Foods
Corporation for $350 million, which was financed by a bridge loan through its Jollibee
Worldwide subsidiary. The JFC stock exchange disclosure notes, “The securities
will be accounted for as equity, and will strengthen the balance sheet of the
Guarantor, in line with its policy of prudent financial management.”
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