Fastfood chain operator Jollibee Foods Corp. (JFC) said over the weekend it would redeem next month P3 billion worth of preferred shares it issued in 2021.
JFC said its board of directors approved the redemption of 3 million Series A preferred shares issued and listed in the Philippine Stock Exchange in Oct 14, 2021 at P1,000 apiece.
“In accordance with the terms of the issuance, the company will redeem all outstanding Series A preferred shares on Oct. 14, 2024 at a redemption price equal to the offer price plus any accrued and unpaid cash dividends, after deducting transfer costs customarily chargeable to stockholders, as applicable, to effect the redemption,” JFC said.
JFC in 2021 issued 12 million preferred shares worth P12 billion. Of the total, 3 million shares were classified as Series A with a dividend rate of 3.2821 percent per annum, while the remaining 9 million preferred shares were under Series B with a dividend rate of 4.2405 percent per annum.
The fast-food giant earlier dropped plans to issue P8 billion worth of preferred shares to refinance debt and support expansion plans on strong cash-flow from domestic operations and continued high-interest rate environment.
JFC said it would explore other debt instruments that are more viable to take advantage of upcoming lower interest rates.
It also lowered its planned capital expenditures by at least 20 percent this year from an initial target for P23 billion. It plans to open 700 to 750 company owned and franchised stores this year.
