RFG upsizes capital raising to $190m
The franchisor says the move will harness the “underlying value” of their network.
Retail Food Group has upsized its capital raising to secure $190 million, days after its initial earlier announcement about the move.
The capital raise will now be made up of an institutional placement of approximately 1,700 million ordinary shares at $0.10 per share to raise $170m, subject to shareholder approval at a general company meeting to be held on or around 19 November.
Its share purchase plan, also at $0.10 per share, now plans to raise a further $20m, doubling their initial proposal.
"The recapitalisation is transformational for the RFG business and will allow the RFG team to continue to harness the underlying value of the franchise network and enhance franchisee profitability,” chairman and CEO Peter George said in a statement sent to the ASX.
The franchisor behind Gloria Jean's, Donut King, and Michel's Patisserie reiterated that $118.5 million of proceeds from the offer will be used to pay of existing senior debt, with lenders having agreed to extinguish $71.8m worth of debt upon receipt of $118.5m and provide a new $75.5m term loan facility to refinance existing senior debt maturing in November 2022.
FY20 underlying EBITDA guidance remained at $42-46m.
