JFC to offer US securities to improve cash flow


Jollibee Foods Corp. (JFC) is planning to offer US unsecured securities to generate funds to support the company through the coronaconomy caused by the COVID-19 pandemic.

In a disclosure to the Philippine Stock Exchange(PSE) Wednesday, the country’s fast-food giant said it had assigned several banks to establish a series of fixed income investor meetings beginning June 17. The company plans to issue dollar-denominated guaranteed, senior unsecured securities offering subject to market conditions

The banks are Citigroup, Goldman Sachs, J.P. Morgan, and Morgan Stanley as joint global coordinators, and Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, BPI Capital Corp., Credit Suisse, and UBS as joint lead managers and book runners.

The company said in a statement, “Proceeds from the contemplated offering will be used for general corporate purposes, intended as a precautionary measure from unforeseen eventualities that may be caused by the COVID-19 pandemic, as well as fund initiatives of the group,”. It warned losses in the second quarter may fall deeper due to longer quarantines, thus financial performance for the whole year “will not be a good one.”

Part of JFC’s initiatives to weather the pandemic is cutting its 2020 budget for capital expenditures by 63% to P5.2 billion. It is also allocating P7 billion to “rationalize and re-design” its business structure to adapt to new consumer habits arising from the pandemic.

JFC owns food brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Highlands Coffee, Hard Rock Café, Smashburger and Coffee Bean and Tea Leaf. It has 5,945 stores across the world, where 3,317 are in the Philippines. Source..

Jollibee Foods Corporation is listed in the PSE as $JFC, it’s last traded was Php 145.00 per share up +1.75% from the previous close as of June 17, 2020, with Php 400M value traded.

-Stockbytes PH, June 18, 2020

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JFC to offer US securities