Restaurant chain operator Jollibee Foods Corp. said it plans to tap the debt market to refinance the $80-million maturing obligation of US-based burger chain Smashburger.
Jollibee said in a disclosure to the stock exchange that amending Smashburger’s debt structure would be one of its top priorities as soon as it finalized the acquisition of additional stake in Smashburger to ensure the long-term growth of the company.
Jollibee said it was expecting the acquisition of additional stake in Smashburger to 85 percent from the current 40 percent worth $100 million to be completed in one or two months subject to government approval in the United States and meeting certain closing conditions.
Smashburger through parent company Smashburger Master LLC has $80 million in debt maturing on May 15, 2018.
Under the plan, Jollibee will borrow long-term loans from banks or issue loan guarantees to banks on behalf of Smashburger in order to implement the refinancing plan.