R&R completes major funding deal

R&R Ice Cream is looking to grow after completing a £300m bond issue and agreeing a new £50m revolving credit facility.

The new arrangements have seen R&R repay its existing bank debt and cuts the bank groups it deals with from more than 40 to three.

HSBC’s Yorkshire corporate banking team acted as joint mandated lead arranger on the revolving credit facility and co-manager on the bond issue alongside Barclays Capital and Credit Suisse International.

James Lambert, chief executive of R&R Ice Cream, said: “The highly successful bond issue and related revolving credit facility highlights the confidence of the investor and banking community in our business.

“We are very pleased to have the support of HSBC, Barclays Capital and Credit Suisse International whose presence, connectivity and shared vision for our business help to make our goals possible.”

R&R Ice Cream was formed in 2006 by a merger of Richmond Icre Cream and Roncadin and makes products under brands including Rowntree Fruit Pastille and Ribena as well as supplying major retailers such as Sainsbury’s and Tesco.

The HSBC team included Norman Davidson and Richard Chambers from its specialised finance division, as well as Martin Lunt and Mike Wilson from the Yorkshire and North East corporate banking operation.

Martin Lunt, HSBC head of corporate banking for Yorkshire and the North East, said: “This is an ambitious, acquisitive and innovative business.

“The combination of simplified banking alongside a sound working capital base over the long term will provide a strong footing for this local business to fulfil its ambitions.

“We were delighted to support the R&R management team and look forward to celebrating future successes with them.”