MAX’S GROUP, Inc. (MGI) and one of its subsidiaries are tapping loan facilities of the Development Bank of the Philippines (DBP) to raise a combined amount of P2 billion.
The listed casual dining firm told the stock exchange yesterday it signed a P1-billion five-year loan agreement with DBP. The cash to be generated will be used to fund “existing short-term loans to mitigate financing costs and to fund general corporate requirements.”
Its wholly-owned subsidiary, No Bia, Inc., likewise entered a separate, 10-year loan agreement with the DBP to raise P1 billion. MGI said this will be used to pay for the construction and commissioning of a new commissary in Carmona, Cavite.
“The loan is secured by a suretyship extended by MGI,” it added.
MGI announced in May it is constructing the P1-billion No Bia Food Manufacturing and Distribution Center in Cavite. The commissary, which is targeted to open in 2020, will support MGI’s planned store expansion.
Once operational, the commissary will support MGI’s brands which include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s and Sizzlin’ Steak.
The company earlier said it is committing to spend P600 million for capital expenditures in 2019.
MGI is targeting to open 80 new stores before 2019 ends. It previously said it was able to open 50 new stores as of end-September, increasing its pool of restaurants to 730 branches worldwide.
The company’s net income in the nine-month period stood at P494.77 million, up 9.8% from last year, driven by the increase in its franchised stores.
Shares in MGI at the stock exchange traded flat on Tuesday, closing at P12.50 each. — Denise A. Valdez