Jollibee to Issue $600m Guaranteed Senior Perpetual Securities

This issuance is one of the first by an Asian restaurant company.

Jollibee Foods Corporation

Jollibee Foods Corporation (JFC), the largest food service company in the Philippines and one of the largest in Asia, announced that it had successfully priced a US$600 million Reg S only US dollar-denominated guaranteed senior perpetual capital securities offering with an initial distribution rate of 3.9 percent, non-call (5 years) and payable semi-annually.

The Securities will be issued by Jollibee Worldwide Pte. Ltd, a wholly owned subsidiary of JFC.

This transaction represents the first ever bond or perpetual securities issuance from JFC and the first time that JFC has tapped the capital markets since its Initial Public Offering in 1993. This issuance is one of the first by an Asian restaurant company.

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

As disclosed by JFC in its press release dated 9 January 2020, proceeds from the offering are intended primarily to refinance the short-term debt from the acquisition of International Coffee and Tea, LLC (The Coffee Bean & Tea Leaf®), completed on September 24, 2019, as well as to fund initiatives aligned with Issuer’s general corporate purposes. The Securities will be accounted for as equity.

The objective of management for this issuance is to further strengthen the balance sheet of JFC to build a stronger foundation for accelerating its growth in order to achieve its vision to become one of the top 5 restaurant companies in the world.

The transaction was oversubscribed by almost 10 times the original intended issue amount of US$400 Million, allowing the company to upsize the transaction to US$600 Million and tighten final pricing by 35 basis points to 3.9 percent from the initial price guidance of 4.25 percent.

This marks the lowest pricing for a 5-year perpetual Securities issued by a Philippine company reflecting the strong demand for a JFC bond and the reputable credit standing of the company.

Jollibee Foods Corporation acquired 100 per cent of American specialty coffee and tea brand The Coffee Bean & Tea Leaf for $350 million, the Philippines fast-food giant’s biggest multinational acquisition to date. –