PH Dealbook: RCBC bond issue fetches $320m; Jollibee seals $99.5m deal with Smashburger

Visual from the company website. October 2015

In two separate business developments, financial services provider Rizal Commercial Banking Corp (RCBC) raised $320 million from a bond offering, while fast-food giant Jollibee Foods Corp has completed its 40 per cent stake buy in US-based restaurant brand Smashburger Master LLC, for $99.5 million.

PH bank RCBC raises $320m from bond deal

Philippine universal bank RCBC disclosed on Tuesday it raised $320 million from a bond offering that received orders of over $1.3 billion.

The over-subscription, which was over four times its intended issuance, has allowed RCBC to tighten its pricing from an initial guidance of 3.75 per cent to 3.45 per cent. The senior unsecured Reg S bonds are due on 2021.

RCBC senior vice president and CIO Christina Alvarez informed the local stock exchange the pricing is the lowest coupon ever by a Philippine bank and reflective of strong investor demand. It is also the largest USD-bond issuance by a Philippine bank so far.

The Yuchengco-led bank will use the proceeds of the issuance to finance its participation in loans that are primarily intended for infrastructure projects.

Also Read: PH bank RCBC gets $280m syndicated loan

The issuance, in denominations of $125 million and increments of $1,000 thereafter will settle on November 2, 2015 and mature on February 2, 2021. It will also be listed on the Singapore Stock Exchange, similar to its other outstanding USD-denominated bonds.

Also Read: RCBC, Cathay Life close $179m equity investment deal

Bank of America and Merrill Lynch, HSBC, and JP Morgan acted as joint lead managers and bookrunners for the transaction.

Rated Baa3 by Moody’s and BB by Fitch, RCBC did a well-received roadshow in Singapore and Hong Kong last October 20 and 21, attracting over 150 accounts, allowing the Philippine lender to allocate approximately 87 per cent of the orders to offshore accounts, further diversifying its investor base.

RCBC’s last trading price increased 0.98 per cent or P0.300 to close at P31.65.

Also Read: PH Roundup: DBP execs charged with graft, RCBC to get $100m securities

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PH fast-food king Jollibee seals $99.5m investment in US-based Smashburger

The Philippines’ fast-food king Jollibee disclosed Tuesday that it has completed its $99.5 million strategic investment in US-based restaurant brand Smashburger.

Jollibee vice president Valerie Amante informed the stock exchange that the company’s wholly owned subsidiary Bee Good! Inc. (BGI), a holding company, has completed its acquisition from Smashburger of 40 per cent of the outstanding units of SJBF LLC, the parent company of the entities comprising the Smashburger business.

The deal closed exactly two weeks after BGI entered into an agreement with Smashburger.

With headquarters in Denver, Colorado, there are 339 Smashburger restaurants worldwide in 35 states in the US and in 7 foreign markets. It is considered as one of the fastest growing restaurant brands in the US.

Also read: PH food titan Jollibee buys 40% stake in US-based Smashburger for $99m

“The purchase price in the amount of $99,473,918 was paid in cash at closing,” Vera said. “Jollibee Foods Corporation has funded the acquisition of its 40 per cent stake in Smashburger with its cash reserves and with a 10-year loan from Metropolitan Bank and Trust Company.”

The purchase price for BGI’s 40 per cent share in Smashburger is based on a $335 million enterprise value and a $248 million equity value.

Vera added BGI has a mechanism in the agreement with Smashburger to purchase up to an additional 35 per cent of it between 2018 and 2021 and the balance of 25 per cent between 2019 at the earliest and 2026 at the latest. The purchase price for the remaining 60 per cent will be based on the achievement of certain financial performance targets agreed between BGI and Smashburger.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.