PAI's R&R aims to raise £315m on high-yield market

The notes will mature in 2020 and will go towards refinancing R&R's existing senior secured notes and pay the costs and fees incurred as part of the transaction. The company will also rely on factoring facilities to partly refinance its existing notes.

R&R's existing senior secured notes are due to mature in 2017 and pay an 8.37% coupon.

PAI partners struck a deal to buy the British ice cream manufacturer from Oaktree Capital for €850m a year ago. Oaktree had acquired Richmond Foods in 2006 and subsequently merged it with German ice cream firm Roncadin to form R&R.

PAI turned to a €253m PIK toggle note to finance the acquisition in April last year, which allowed it to keep R&R's existing senior secured bonds in place. The notes' interest accrues at 9.25% if paid in cash, or 10% if settled from the issue of PIK notes.

In its 2013 bondholder information pack, R&R warned that the business is "highly leveraged and has significant debt service obligations". As of the end of last year, R&R had total consolidated debt of €354.7m outstanding, all of which senior, including €350m of senior secured notes. In addition, the business had a €60m revolving credit facility in place, as well as €253m outstanding in connection with the PIK notes issued as part of the 2013 buyout.

R&R is a Yorkshire-based manufacturer of ice cream, selling its products under a variety of brands including Fab Lollies, Kelly's Cornish Ice Cream and Skinny Cow. James Lambert and Jonathan Ropner founded the business in 1985. R&R posted a €680m turnover in 2013, with a €92m adjusted EBITDA and a €48.5m loss before tax.

Reports emerged earlier this month that PAI could be looking at an IPO for the business, although the private equity firm denied such plans at the time.

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• Topics
• UK / Ireland
• Restructuring
• Consumer
• PAI Partners
• Refinancing
• high yield