The Real Good Food Company Announces Debt Refinancing Transactions with PMC Financial Services and Emblem Investments Fund I, LP
The Real Good Food Company (NASDAQ: RGF) has announced significant debt refinancing transactions with PMC Financial Services and Emblem Investments Fund I, LP. The company has amended its existing financing with PMC and entered into a new term loan agreement of $60 million with Emblem. Of this amount, $8 million will repay existing PMC financing, while $52 million will be used for general corporate purposes and transaction fees.
These transactions aim to support the expansion of manufacturing capabilities and drive corporate initiatives for profitable long-term growth. As part of the agreement, the company issued 19.99% of its outstanding equity to Emblem in the form of Class C Units of its subsidiary, exchangeable into common shares. CEO Tim Zimmer expressed that these transactions provide significant liquidity for critical investments in supply chain and strategic initiatives, positioning the company to meet strong product demand and improve customer service.
La Real Good Food Company (NASDAQ: RGF) ha annunciato importanti operazioni di rifinanziamento del debito con PMC Financial Services e il fondo Emblem Investments Fund I, LP. L'azienda ha modificato il proprio finanziamento esistente con PMC ed è entrata in un nuovo accordo di prestito a termine di 60 milioni di dollari con Emblem. Di questa cifra, 8 milioni di dollari serviranno a ripagare il finanziamento esistente di PMC, mentre 52 milioni di dollari saranno utilizzati per scopi aziendali generali e spese di transazione.
Queste operazioni mirano a sostenere l'espansione delle capacità di produzione e a promuovere iniziative aziendali per una crescita sostenibile e profittevole a lungo termine. Nell'ambito dell'accordo, l'azienda ha emesso il 19,99% del proprio capitale sociale in circolazione a Emblem sotto forma di Class C Units della sua controllata, convertibili in azioni ordinarie. Il CEO Tim Zimmer ha dichiarato che queste operazioni forniscono una liquidità significativa per investimenti critici nella catena di approvvigionamento e iniziative strategiche, posizionando l'azienda per soddisfare la forte domanda di prodotti e migliorare il servizio clienti.
La Real Good Food Company (NASDAQ: RGF) ha anunciado importantes transacciones de refinanciamiento de deuda con PMC Financial Services y el fondo Emblem Investments Fund I, LP. La empresa ha modificado su financiamiento existente con PMC y ha firmado un nuevo acuerdo de préstamo a plazo de 60 millones de dólares con Emblem. De esta cantidad, 8 millones de dólares se destinarán a pagar el financiamiento existente de PMC, mientras que 52 millones de dólares se utilizarán para fines corporativos generales y tarifas de transacción.
Estas transacciones tienen como objetivo apoyar la expansión de las capacidades de fabricación y fomentar iniciativas corporativas para un crecimiento rentable a largo plazo. Como parte del acuerdo, la empresa emitió el 19,99% de su capital social en circulación a Emblem en forma de Unidades Clase C de su filial, canjeables por acciones ordinarias. El CEO Tim Zimmer expresó que estas transacciones proporcionan una liquidez significativa para inversiones críticas en la cadena de suministro e iniciativas estratégicas, posicionando a la empresa para satisfacer la fuerte demanda de productos y mejorar el servicio al cliente.
리얼 굿 푸드 컴퍼니(나스닥: RGF)는 PMC 금융 서비스와 엠블렘 투자 펀드 I, LP와의 채무 재조정 거래를 발표했습니다. 회사는 PMC와의 기존 금융을 수정하고 엠블렘과 함께 6천만 달러의 새로운 기간 대출 계약을 체결했습니다. 이 중 800만 달러는 기존 PMC 금융을 상환하는 데 사용되며, 5천2백만 달러는 일반 기업 목적으로 및 거래 수수료에 사용됩니다.
이 거래는 제조 능력 확장을 지원하고 수익성 있는 장기 성장을 위한 기업 이니셔티브를 추진하기 위해 설계되었습니다. 협약의 일환으로 회사는 엠블렘에 19.99%의 발행 주식을 발행했습니다 이것은 자회사의 C 클래스 유닛 형태로, 보통주로 전환 가능합니다. CEO 팀 짐머는 이 거래들이 공급망과 전략적 이니셔티브에 대한 중요한 투자에 대한 상당한 유동성을 제공하여 강력한 제품 수요를 충족하고 고객 서비스를 개선할 수 있는 위치를 마련한다고 밝혔습니다.
La Real Good Food Company (NASDAQ: RGF) a annoncé d'importantes opérations de refinancement de sa dette avec PMC Financial Services et le fonds Emblem Investments Fund I, LP. L'entreprise a modifié son financement existant avec PMC et a signé un nouveau contrat de prêt à terme de 60 millions de dollars avec Emblem. Sur ce montant, 8 millions de dollars serviront à rembourser le financement existant de PMC, tandis que 52 millions de dollars seront utilisés à des fins corporatives générales et pour des frais de transaction.
Ces transactions visent à soutenir l'expansion des capacités de production et à promouvoir des initiatives d'entreprise pour un croissance rentable à long terme. Dans le cadre de l'accord, l'entreprise a émis 19,99 % de ses actions en circulation à Emblem sous forme d'unités de classe C de sa filiale, échangeables contre des actions ordinaires. Le PDG Tim Zimmer a déclaré que ces transactions offrent une liquidité significative pour des investissements clés dans la chaîne d'approvisionnement et des initiatives stratégiques, positionnant l'entreprise pour répondre à une forte demande de produits et améliorer le service client.
Die Real Good Food Company (NASDAQ: RGF) hat bedeutende Umschuldungstransaktionen mit PMC Financial Services und dem Emblem Investments Fund I, LP angekündigt. Das Unternehmen hat seine bestehenden Finanzierungsvereinbarungen mit PMC geändert und ein neues Terminkreditabkommen über 60 Millionen Dollar mit Emblem abgeschlossen. Von diesem Betrag werden 8 Millionen Dollar zur Rückzahlung der bestehenden PMC-Finanzierung verwendet, während 52 Millionen Dollar für allgemeine Unternehmenszwecke und Transaktionsgebühren verwendet werden.
Diese Transaktionen zielen darauf ab, die Erweiterung der Produktionskapazitäten zu unterstützen und Unternehmensinitiativen für lukratives, langfristiges Wachstum voranzutreiben. Im Rahmen der Vereinbarung hat das Unternehmen 19,99% seines ausstehenden Eigenkapitals an Emblem ausgegeben in Form von Klasse-C-Einheiten seiner Tochtergesellschaft, die in Stammaktien umwandelbar sind. CEO Tim Zimmer äußerte, dass diese Transaktionen eine signifikante Liquidität für wesentliche Investitionen in Lieferkette und strategische Initiativen bieten, wodurch das Unternehmen gut positioniert ist, um einer starken Produktnachfrage gerecht zu werden und den Kundenservice zu verbessern.
- Secured $60 million new term loan from Emblem Investments Fund I, LP
- Amended existing financing with PMC Financial Services Group,
- $52 million available for general corporate purposes and transaction fees
- Increased liquidity to support manufacturing expansion and corporate initiatives
- Potential for improved supply chain capabilities to meet product demand
- Issued 19.99% of outstanding equity to Emblem, potentially diluting existing shareholders
- $8 million used to repay existing debt, reducing net new capital
Insights
This debt refinancing is a significant development for Real Good Foods, providing
- Improved liquidity:
$52 million for corporate purposes after debt repayment - Enhanced manufacturing capabilities
- Support for strategic initiatives
- Potential for improved profitability
The
This refinancing deal comes at a important time for Real Good Foods, operating in the competitive frozen and refrigerated foods sector. The health and wellness focus of their products aligns with growing consumer trends, presenting significant market opportunities. However, the need for such substantial financing suggests challenges in scaling operations profitably.
Key points to consider:
- Potential for improved market position with enhanced manufacturing capabilities
- Opportunity to capitalize on health-conscious consumer trends
- Risk of dilution for existing shareholders due to the equity component
- Execution risk in implementing operational improvements
The success of this refinancing will largely depend on management's ability to effectively utilize the new capital to drive operational efficiencies and capture market share. Investors should closely monitor upcoming quarterly results for signs of improved financial performance and market penetration.
Emblem Financing Provides Significant Incremental Liquidity to Drive Operational Turnaround Supporting Continued Growth
CHERRY HILL, N.J., Sept. 26, 2024 (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 it has amended its existing financing with PMC Financial Services Group, LLC (“PMC”) and entered into an agreement with Emblem Investments Fund I, LP (“Emblem”) for a new term loan of
These transactions support the expansion of the Company’s manufacturing capabilities and drive several corporate initiatives to position the Company for profitable long-term growth. Additionally, as part of the agreement, the Company issued
Tim Zimmer, CEO of Real Good Foods, said: “We are thrilled to announce these transformational transactions, which provide us with significant liquidity and therefore the capability to make critical investments in our supply chain and strategic initiatives. This will better position our supply chain to meet strong demand for our products and improve service for our customers, which sets the foundation for profitable long-term growth. These transactions are a testament to the confidence the Company’s lenders have in the business and its long-term potential.”
About Emblem
Emblem is a private equity firm based in Boston that makes catalyzing investments in market-leading businesses. Emblem has a flexible mandate, a long-term approach, and a focus on alignment with its partners.
About Real Good Food Company
Real Good Foods, Inc. (NASDAQ: RGF) is a leading health and wellness frozen and refrigerated foods company, providing a better way to enjoy your favorite foods. The Company’s mission is to provide “Real Food You Feel Good About Eating”, making delicious, nutritious foods that are low in sugar, low in carbohydrates and high in protein. The Real Good Foods family of products includes breakfast, lunch, dinner, and snacks – available in over 16,000 stores nationwide with additional direct-to-consumer options.
To learn more, please visit our website at realgoodfoods.com or join us on social media @realgoodfoods, where we maintain some of the largest followings in the frozen food industry today.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the timing of the filing of Company’s late periodic reports and amendments to prior periodic reports, the Company’s plan to request a hearing to appeal its delisting determination by Nasdaq, and the Company’s plan to request various extension periods to regain compliance with the Listing Rule. The Company has attempted to identify forward-looking statements by using words such as “anticipate,” "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions.
Forward-looking statements represent management's current expectations and predictions about trends affecting the Company’s business and industry and are based on information available as of the time such statements are made. Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, it cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause its actual results to materially differ from those expressed or implied by these forward-looking statements, including the risk of further delays in the filing of the Company’s late periodic reports and restated financial statements in amendments to prior periodic reports, the discovery of additional information regarding the error identified in the Company’s previously issued consolidated financial statements, the scope of the anticipated restatement of previously issued financial statements as a result of the error, the remediation by management and the Company’s independent registered public accounting firm of the identified material weaknesses in internal control over financial reporting, the Panel’s determination following the Company’s appeal of its delisting decision, the Panel’s decision whether or not to grant the Company various extension periods following the submission of a hearing request to regain compliance with the Listing Rule, the Company’s ability to regain compliance with the Listing Rule and other continued listing standards and other risk factors described in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022 and other documents filed with or furnished to the SEC by the Company from time to time. These forward-looking statements speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.
Investor Relations Contact
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(949) 259-4987
RGF@mzgroup.us
www.mzgroup.us
FAQ
What is the total amount of the new term loan secured by Real Good Foods (RGF)?
How much of the new loan will Real Good Foods (RGF) use to repay existing debt?
What percentage of equity did Real Good Foods (RGF) issue to Emblem Investments?
How does Real Good Foods (RGF) plan to use the majority of the new loan proceeds?
