The challenge
Premier has grown into one of South Africa's iconic food and consumer goods producers, providing South Africa with a wide range of well-recognised brands and much needed staple foods.
Premier had invested for the long term with equity from its shareholder, Brait, and the use of debt funding. Premier, together with RMB, embarked on a process to refinance its debt facilities in 2019 to enhance its capital structure.
The RMB solution
As a long-term transactional and investment banking client, RMB was the natural partner for Premier to assist them in structuring a new debt refinancing solution.
Through structured debt advisory and leveraged finance capabilities, RMB cemented its well-established partnership with Premier by underwriting and co-funding the full R2.2-bn debt package.
RMB saw further opportunities to assist Premier by structuring the debt package with greater flexibility to accommodate the nature of soft commodities trading and provided working capital facilities as part of its transactional banking relationship.
Proven results
RMB provided Premier with a more flexible refinanced debt structure, enabling Premier to align its capital structure and realise its growth plan.
| Client | Premier |
|---|---|
| Deal value | R2.2-bn |
| Sector | Retail |
| Capabilities | Leveraged finance, transactional banking, structuring, trade and working capital |
| RMB's role | Debt adviser, sole underwriter, sole mandated lead arranger, sole bookrunner, co-funder and transactional banker |
| Country | South Africa |
