Jollibee submits tender offer for $250 mil of its Singapore-listed preferred shares

Jollibee [JFC 203.20 0.10%] said that it caused Jollibee Worldwide, a wholly-owned subsidiary of JFC, to submit a tender offer to purchase up to US$250 million worth of the $600 million outstanding “Senior Perpetual Securities” that is listed on the Singapore Exchange last year to help pay for its $350 million purchase of Coffee Bean & Tea Leaf. JFC and Jollibee Worldwide will use the proceeds of its recent preferred shares sale to fund the tender offer.

JFC recently sold P12 billion worth of preferred shares, the first tranche of its P20 billion shelf-registered preferred offering.

MB BOTTOM-LINE

This is a pretty straightforward debt shuffle, where JFC signs some new debt at a lower rate (the prefs it just sold on the PSE) to pay off some old debt at a higher rate (the prefs it sold on the SGX last year). I’m highlighting it to show the direct through-line between the original prefs sale and this redemption. With all the news that gets blasted at investors every day, it can be easy to start to lose the plot, to get lost in what’s actually going on.

Companies don’t often come straight out and tie events together for us, and I sometimes take comfort in being able to see the direct results of actions, or in being able to reverse engineer why a new event has happened. This is one of those times for me. 

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