Pancake House raises money to buy Teriyaki Boy

Pancake House Inc. has successfully completed its notes issuance to finance the purchase of 70 percent of local Japanese fastfood chain Teriyaki Boy.

In a disclosure to the stock exchange, Pancake House said it sold five-year convertible notes worth $4 million or P220.5 million. The notes were purchased by Aureos Southeast Asia Fund and Planters Bank Venture Capital Corp.

The notes are convertible at any time at the option of the investors to 49.16 million common shares of Pancake House equivalent to 20.67 percent of the company’s enlarged capital at the conversion price of P4.485 a share.

The notes will be automatically converted into Pancake House common shares at the end of the five-year term.

Pancake House said the notes will earn interest at a variable rate dependent on the company’s net profit for the period.

The Lorenzo family, which owns Pancake House, intends to set up 40 new Teriyaki Boy restaurants in the next three years as part of efforts to further boost its foothold in the casual dining industry.

Teriyaki Boy, the second restaurant acquired by Pancake House after grill restaurant chain Dencio’s, currently has 10 branches.

Pancake House has formed Teriyaki Boy Group, Inc. which will manage, operate and control the Japanese restaurant chain’s nine company-owned stores, commissary and head office facilities.

Pancake House chairman Martin Lorenzo said he is very optimistic about the Teriyaki Boy venture, which represents yet another step in the group’s commitment to develop home-grown brands with high market recall.

The Teriyaki Boy brand, being synonymous with quality food, fast and efficient service, and great dining experience, will address the changing dining behavior of the market.