AFR: Donut King owner Retail Food Group in $45m raising


Listed franchisee business Retail Food Group has put a $45 million raising to investors, telling them it was the final step in turning the company around new executive chairman Peter George.

The raising was split into a $25m equity placement, and a $20m term loan facility via shareholder Washington H Soul Pattison.

The placement was priced at 8¢ a share, a 12 per cent discount to Tuesday’s close and a 19 per cent to 30-day volume weighted average price.

Potential backers were told the raising would retire the company’s debt and leave some room to fund growth initiatives.

RFG’s franchisee brands include Gloria Jeans, Donut King, Brumbies and Crust. It is guiding to $26 million to $29 million EBITDA for the 2023 financial year, telling investors putting franchisees first in the past four years was working for company health.

Shaw and Partners and Petra Capital were the lead Managers on the raising, and 333 Capital was understood to have acted for RFG in putting together the debt package with RFG’s 8 percent shareholder Soul Patts.

Arnold Bloch Leibler is doing RFG’s legal work.

Extracted Source: The Australian Financial Review