News

INDIA: United Spirits refinances debt

Most popular

What are Diageo's priorities for the years ahead?

Diageo Performance Trends 2014-2018 - results data

What can the spirits industry learn from Diageo?

As Irish whiskey comes of age, so do its problems

MORE

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

//i2.aroq.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

India hiccups pull on United Spirits sales in FY fiscal-2017 - results

India hiccups pull on United Spirits sales in FY fiscal-2017 - results...

United Spirits' nine-month performance by pricing segment and brand - Focus

United Spirits' nine-month performance by pricing segment and brand - Focus...

"Do you go and buy Chivas Regal at Lidl? I don't think so" - Interview, Marie Brizard Wine & Spirits...

International Wine & Spirit Competition 2017 - Spirits - Part II - whisk(e)y winners

International Wine & Spirit Competition 2017 - Spirits - Part II - whisk(e)y winners...

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?