{"id":332030,"date":"2025-03-28T00:36:29","date_gmt":"2025-03-27T16:36:29","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332030"},"modified":"2025-03-28T00:36:29","modified_gmt":"2025-03-27T16:36:29","slug":"trade-the-news-jfc-to-issue-300m-notes-with-5-332-coupon","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-jfc-to-issue-300m-notes-with-5-332-coupon\/","title":{"rendered":"Trade the News: JFC to issue $300M notes with 5.332% coupon"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Jollibee Foods Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>JFC<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 335.28<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

JOLLIBEE FOODS CORP. (JFC) has set the terms for its $300-million note issuance, with the five-year senior unsecured notes carrying a fixed coupon rate of 5.332%.<\/p>\n\n\n\n

The Regulation S notes will carry semi-annual interest payments, JFC said in a regulatory filing on Wednesday.<\/p>\n\n\n\n

The company said the transaction had a final orderbook exceeding $2 billion, equivalent to an oversubscription rate of seven times.<\/p>\n\n\n\n

The notes will be issued by JFC\u2019s subsidiary, Jollibee Worldwide Pte. Ltd. (JWPL). The notes are unrated and will be listed on the Singapore Exchange Securities Trading Ltd.<\/p>\n\n\n\n

\u201cThe significant investor demand played a key role in allowing JFC to tighten 35 basis points (bps) from initial price guidance, eventually landing at a spread of 125bps over the five-year US Treasury,\u201d JFC said.<\/p>\n\n\n\n

\u201cThe notes offering is expected to settle on or about April 2, subject to the satisfaction of customary closing conditions,\u201d it added.<\/p>\n\n\n\n

The company will use the proceeds for general corporate purposes and refinancing of JWPL\u2019s existing borrowings. Regulation S issuances are securities offered outside the United States that are not registered under the US Securities Act or any US state securities laws.<\/p>\n\n\n\n

\u201cThis landmark transaction represents JFC\u2019s first return to the US dollar primary bond market since 2020. JFC is also the first Philippine corporate issuer to access the international bond market in 2025\u2026,\u201d JFC said.<\/p>\n\n\n\n

In a separate e-mail statement, financial research firm CreditSights said it sees little room for the new JFC issuance to tighten in the secondary market.<\/p>\n\n\n\n

\u201cWe expect the new Jollibee bond to price close to where we see fair value, with little room for meaningful spread compression in the secondary market,\u201d it said.<\/p>\n\n\n\n

JFC Chief Financial Officer Richard Shin said in a virtual media briefing on Tuesday that the company would convert the planned issuance to senior bonds from perpetual bonds.<\/p>\n\n\n\n

\u201cThe reason for that is it\u2019s more cost effective as a senior bond versus a perpetual bond. Our covenants are all in a very good place. We want to do best for shareholders by getting the lowest cost,\u201d he said.<\/p>\n\n\n\n

\u201cThis is our perpetual bond in the amount of $396 million that was due in January\u2026 We\u2019ve taken the $96 million out of the $396 million and we converted that into very favorable rate term (peso) loans onshore,\u201d he added.<\/p>\n\n\n\n

(News Source: Business World<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-332030","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=332030"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332030\/revisions"}],"predecessor-version":[{"id":332032,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332030\/revisions\/332032"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=332030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=332030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=332030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}