News

INDIA: United Spirits refinances debt

Most popular

The 'metaverse' opportunity for beverage brands

Campari faces familiar troubles - analysis

Sustainability and responsibility activations

India - Still spirits promised land? - comment

Beverage companies set for tough pricing desicions

MORE

United Spirits has taken out a fresh loan to refinance GBP375m (US$613.5m) of debt related to its acquisition of Whyte & Mackay.

//i4.progressivedigitalmedia.com/1/ub_logo.jpg

The Vijay Mallya-controlled Indian spirits group said yesterday (25 July) that its new seven-year loan is set to work out 0.45 percentage points cheaper than its existing loan facility.

The deal offers United Spirits some breathing space as it seeks to expand. The new loan includes a three-year moratorium "and a ballooning repayment over the subsequent four years", said the firm, which, as of this year, claims to be the world's largest spirits group by volume.

According to United Spirits, the loan deal will also help Whyte & Mackay in its efforts to refocus on branded Scotch whisky, rather than bulk supply. "This arrangement gives Whyte & Mackay, which United Spirits acquired in 2007, the flexibility of focusing on its brand building plans, which are receiving a very favourable response," said the group.

Debt levels at United Spirits have been a significant concern, threatening to overshadow consistent rises in sales and profits over the past two years. In 2007, the firm took out a US$625m loan to finance the acquisition of Whyte & Mackay for US$1.18bn. According to reports, United Spirits has debt of around INR60bn (US$1.35bn).

In late 2009, the group sought to raise funds to pay off debt via a share sale. It also entered talks on a potential tie-up with Diageo, although these negotiations came to nothing. In early 2010, sources close to the company said that it was considering a stock listing for Whyte & Mackay, although this, too, has so far failed to materialise.


Related Content

"We're living through very anxious times" - just-drinks speaks to Distilled Spirits Council CEO Chri...

Why brown spirits is behind the low- & no-alcohol curve - Comment

Why brown spirits is behind the low- & no-alcohol curve - Comment...

Why aged spirits should be wary of opaque low- & no-alcohol trend - comment

Why aged spirits should be wary of opaque low- & no-alcohol trend - comment...

Brands sale collapses as Marie Brizard Wine & Spirits chairman readies departure

Brands sale collapses as Marie Brizard Wine & Spirits chairman readies departure...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?