The Retail Food Group Limited (ASX: RFG) share price rose 5% today in response to the food outlet franchisor announcing some news.
The franchisor of Gloria Jeans, Donut King, Brumby's Bakery, Pizza Capers, Michel's Patisserie and Crust Pizza gave investors an update about its debt.
Retail Food Group said it has renegotiated its financial covenants with its lenders under the senior debt facilities, and received a waiver with respect to the potential review event able to be initiated after 28 February 2019.
The operating leverage ratio and interest cover ratio financial covenants have been reset and apply to the period ending 31 March 2019 and for the balance of the facility term to 31 October 2019. The FY19 earnings guidance for the company will accommodate the level of these reset covenants for the relevant period.
The RFG board said that it is exploring a range of options to reduce debt, including equity and other debt funding options, and potential asset sales.
