Homegrown fastfood giant Jollibee Foods Corp. raised $600 million from its first issue of US dollar bonds as part of efforts to further strengthen its balance sheet
The maiden bond issue proved a real hit as it was oversubscribed by nearly 10 times, reflecting the strong support of both institutional and retail investors. The overwhelming demand for the bonds prompted JFC to upsize the transaction from the original plan of $400 million.
In a statement, JFC said the transaction, which is one of the first by an Asian restaurant company, has been priced at a spread of 3.9 percent payable semi-annually.
Proceeds from the offering will be largely used to refinance the short-term debt from the acquisition of The Coffee Bean & Tea Leaf as well as for general corporate purposes.
The bonds issued by subsidiary Jollibee Worldwide Pte. Ltd. are unrated and will be listed on the Singapore Exchange Securities Trading Ltd.
Citigroup and J.P. Morgan were = the joint global coordinators while Citigroup, Credit Suisse, JP Morgan, and Mizuho Securities served as joint lead managers and joint bookrunners for the transaction.