RGF - The Real Good Food Company Announces Definitive Debt Refinancing Agreement to Enhance Liquidity | Benzinga
CHERRY HILL, N.J., Nov. 21, 2023 (GLOBE NEWSWIRE) -- The Real Good Food Company, Inc. (NASDAQ:RGF) ("Real Good Foods" or the "Company"), a leading health and wellness frozen and refrigerated foods company, today announced the signing of a definitive debt refinancing agreement with PMC Financial Services Group, LLC ("PMC"), which is expected to enhance the Company's liquidity position by up to $15 million.
Per the terms of the agreement, the Company entered into a new $45.0 million second lien loan agreement with PMC ("mezzanine debt"). This new loan will pay down $20 million of existing term loans and a portion of the Company's existing revolving credit facility. After closing, capacity under the revolving credit facility will be $70 million, giving the Company access to an incremental $15 million in liquidity.
This new second lien loan will mature December 31, 2025 (concurrent with the rest of the credit facility), carrying a 9% payment-in-kind ("PIK") interest and 9% cash interest. PMC will be issued penny warrants for a 5% equity interest in the Company, which are exercisable between December 31, 2025 and November 20, 2033.
In addition, terms for the Company's equipment loan were amended to be interest only until May 31, 2024.
Bryan Freeman, Executive Chairman, said: "We are pleased to announce this strategic debt refinancing with PMC Financial Services who has been our lender since 2016. This debt ...