Whisky curator ASC in asset based financing deal
The owner of the Scotch Malt Whisky Society has agreed a £15 million financing facility through a new partner, Ferovinum.
It will give the Artisanal Spirits Company further flexibility to develop its business via recognition of the significant appreciating cask spirit asset base.
As part of the initial agreement, Ferovinum has extended to ASC £2.6m in cash, through a cask spirit parcel valuation of £3.8m at 70% loan to value ratio, for a maximum period of two years with the same headline interest margin as ASC’s existing RBS banking facility.
The Ferovinum platform allows ASC to convert its maturing stock into a just-in-time asset at a truer market valuation.
It gives the group additional financial headroom and a larger financial pool from which to draw, rather than an increase in the overall debt level. The group’s debt position therefore remains as previously guided.
Andrew Dane, CEO of the Artisanal Spirits Company, said: “This is an exciting development giving the group further financial flexibility without increasing gross debt whilst demonstrating the value of the group’s assets.
“ASC has two value streams: the core trading business and its inventory where the value of our spirit casks has been proven by Ferovinum extending capital at retail valuations underpinning the worth of our inventory, providing financial flexibility and giving us further confidence in the company’s investment strategy and asset base.”