Jollibee starts tender offer for perpetual bonds, $203M worth of notes so far tendered
Food

Jollibee starts tender offer for perpetual bonds, $203M worth of notes so far tendered

Tan Caktiong-led Jollibee Foods Corp. said investors holding $203.13 million worth of perpetual securities had participated in its tender offer as October 19.

JFC offered to buy back $250 million out of the $600 million perpetual bonds issued by wholly owned subsidiary Jollibee Worldwide Pte. Ltd. in January last year as part of an overall plan to strengthen its balance sheet.

The tender offer will run until November 3.

Australia and New Zealand Banking Group Ltd., Citigroup Global Markets Ltd., BPI Capital Corp. and Credit Suisse (Hong Kong) Ltd are the dealer managers of the tender offer.

JFC said the tender offer would be funded by the company’s recent issuance of P12 billion worth of Series A and Series B perpetual preferred shares.

Upon completion of both transactions by December, JFC expects to have fewer debt obligations, more distributed financial maturities over the next few years, lower foreign exchange risks and better leverage and debt servicing ratios.

“The tender offer would provide a source of liquidity at a time of increased volatility in the broader credit markets, demonstrating JFC’s willingness to provide support to its note holders. At the same time, the success of the buyback allowed JFC to pursue its proactive liability management strategy to prudently strengthen its balance sheet,” the Asian fastfood giant said.

 
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