UK’s Real Good Food secures credit facility from Leumi

UK-based bakery and ingredients group Real Good Food has secured a credit facility from Leumi ABL (Leumi) to repay debt.

The £8.87m loan provided by Leumi will be used by Real Good Food to repay certain debt facilities provided by its major stakeholders, including NB Ingredients (Napier Brown), Omnicane International Investors and funds managed by Downing.

These shareholders stepped in to bail out the company last year.

Real Good Food will pay £1.627m to Napier Brown, £1.626m to Omnicane, and £1.247m to Downing.

The new arrangement is expected to reduce its annual interest charge.

Real Good Food CEO Hugh Cawley said: “We are delighted with the support we have received from Leumi in the form of the Facilities, as we seek to normalise our facilities with a better balance of bank funding and shareholder support.

“The bank’s support underpins the work the Board has undertaken in streamlining the business units of RGF in order to drive the Group towards consolidated profitability.”

The facilities provided by Leumi include a £5.45m receivables facility, a £1.3m term loan with a 60 months term period and a £2.12m plant with a term period of 36 months.

The company noted that all the facilities carry early termination fees of 3% in the first year, 2% in the second year and 1% in the third and subsequent years.

Last March, Real Good Food announced that it will receive additional funding from three of its major shareholders NB Ingredients, Omnicane International Investors and Downing.