Retail Food Group

333 Capital acted as corporate advisor to ASX-listed Retail Food Group in connection to its $47.4 million debt and equity raising allowing the business to strengthen its balance sheet and pursue both core business and inorganic growth opportunities.

Background

Retail Food Group (‘RFG’, the ‘Company’) is a global multi-brand retail food company which owns and operates iconic Australian franchise brands including Gloria Jean’s, Donut King, Crust Pizza, and Brumby’s Bakery. RFG has over 820 owned or franchised outlets domestically, with another 590 outlets distributed across 41 countries operated through master franchise agreement.

333 Capital were engaged to explore capital solutions for the business that would allow RFG to strengthen its balance sheet and provide adequate capital to pursue growth opportunities in the face of the rising interest rate environment, increased credit market uncertainty, and the Company’s existing debt facilities approaching maturity.

How we helped

333 Capital structured and led a dual-track debt and equity raise in order to find a suitable capital solution which would meet RFG’s objectives. This process included:

• Undertaking a targeted market outreach process for potential new financiers and negotiating a binding term sheet.
• Negotiating full-form debt documentation with RFG’s new lender, Washington H. Soul Pattinson and Company Limited (ASX:SOL), to secure a 3-year term loan facility of $20.0 million.
• Facilitating an equity raising comprised of both a placement to sophisticated and institutional investors of $24.9 million and share purchase plan of up to $2.5 million.
• Assisting the Company in the preparation of key documents including an investor presentation for release on the ASX. 
• Project management of key transaction workstreams including managing engagement with Joint Lead Managers and legal advisors on behalf of the Company.

Result

333 Capital structured and executed a successful debt and equity raising providing a capital solution allowing RFG to strengthen its balance sheet and pursue both core business and inorganic growth opportunities in the future.