Jollibee Foods Corporation may seek funds from offshore financial markets to pay for CBTL
The Philippine company acquired the coffee chain last year.
Jollibee Foods Corporation (JFC) announced it is seeking funds from the offshore financial market, the proceeds of which it will be used to partly pay for its US$350 million acquisition of Coffee Bean & Tea Leaf (CBTL).
The Philippine-based fast food giant said in a disclosure to the country’s stock exchange that its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. has mandated banks, including Citigroup and J.P. Morgan, to arrange a series of fixed income investor meetings in Hong Kong, Singapore, and London starting 13 January.
The company also disclosed that it might offer Regulation S perpetual securities, accounted for as equity, subject to market conditions.
“Proceeds from the contemplated 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 fund initiatives aligned with Issuer’s general corporate purposes,” JFC said in a statement.
The company, which owns its namesake fast food brand, franchising rights to Panda Express amongst others, did not specify the target amount for the bond offering.
Coffee Bean operates over 1,100 outlets across 27 countries, with 150 located in the Philippines.
