(Alliance News) - Cake decoration and food ingredients maker Real Good Food PLC said Friday it has secured a total credit facility of GBP8.9 million from lender Leumi ABL Ltd.
The loan comprises a GBP5.5 million receivables facility, a GBP1.3 million term loan facility and a GBP2.1 million plant & machinery facility.
The receivables and term loan facility each have a 60-month term, while the plant and machinery facility has a 36-month term.
The loan will allow Real Good Food to repay debt facilities provided by major shareholders Napier Brown Ingredients Ltd, Omnicane International Investors Ltd and funds managed by Downing LLP.
"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 Real Good Food in order to drive the group towards consolidated profitability," said Chief Executive Officer Hugh Cawley.
Shares in Real Good Food were up 5.9% at 6.75 pence on Friday.