Most advanced contract distillery in
the United States establishes long
term senior debt funding arranged by Truist Securities and a
syndicate of five banks
ELIZABETHTOWN, Ky., July 25,
2024 /PRNewswire/ -- Whiskey House of Kentucky, the most advanced contract
distillery in the United States,
announced today the successful close of a 5-year, $115 million syndicated credit facility
from Truist Bank, U.S. Bank, First Horizon Bank, Rabobank, and
CoBank (Lenders). Whiskey House commenced operations on
July 1, and the financing closed on
July 19, consisting of a $90 million Senior Secured Term Loan and a
$25 million Revolving Credit
Facility. The financing also provides flexibility to raise up to
$50 million in additional funding as
part of an incremental facility.
The proceeds of the financing will be used to refinance the
company's existing construction loans, fund future growth
expenditure of the company, and provide liquidity for working
capital needs. Concurrent with the transaction, Whiskey House also
received a 5-year commitment for approximately $30 million of junior capital.
"We could not be more excited by the successful completion of
our recent capital raise," said Whiskey House co-founder and CEO
David Mandell. "The magnitude of the
deal and the support of some of the leading banks in the region not
only demonstrates the strength of our business, the stability of
our customers and contracts, and the confidence of our financial
partners, but also provides us with immense flexibility to respond
to our customers' needs. This includes the expansion of our
production capacity, the addition of incremental services and the
pursuit of complementary acquisitions."
"Whiskey House of Kentucky is
at the forefront of innovation when it comes to production and
technology, and the company is poised to change the industry for
brands of all sizes," said Truist Beverage Industry Manager
Joe Goode. "We saw the vision of the
management team and Whiskey House of Kentucky early on, and this transaction
leverages our regional banking and corporate finance teams
alongside deep industry connectivity to create a unique financing
structure that will propel this great company into the next phase
of its growth."
Today's announcement comes on the heels of Whiskey House's
successful start of production at the beginning of the month. The
facility is greater than 100,000 square feet and boasts
a highly sophisticated manufacturing system that runs on
proprietary software. The facility is operating in full automation
mode, 24 hours a day, seven days a week.
Truist Bank, U.S. Bank, First Horizons Bank, Rabobank and CoBank
provided the Financing. Rothschild & Co served as the exclusive
financial advisor to Whiskey House and assisted in arranging the
Financing. Holland & Knight
LLP acted as legal counsel to Whiskey House and Jones Day LLP acted
as legal counsel to the Lenders.
View drone footage of Whiskey House here.
About Whiskey House of Kentucky:
Whiskey House of Kentucky is a state-of-the-art contract
whiskey manufacturing facility, offering bespoke and premium
Kentucky bourbon and American
whiskey to customers at its 176-acre campus in Elizabethtown, Kentucky. As the first
distillery designed from the ground up to focus solely on
large-scale, flexible, contract whiskey production, Whiskey House's
current capacity is 7 million proof gallons per year (112,000
barrels), with the potential to expand to more than 14 million
proof gallons (224,000 barrels). Whiskey House has no brands of its
own and a campus closed to the public, removing all potential
conflicts of interest between the company and its customers. The
team is hyper-focused on providing superior custom whiskey
production, innovative liquid design, exceptional customer service,
and the most competitive pricing for its exclusive branded clients.
For more information, visit www.whiskeyhouse.com.
Contact: Sallie Greco
Sallie@EstesPR.com
(502) 614-5998
or Aubrey Stemle
Aubrey@EstesPR.com
(502) 614-5997
Estes Public Relations
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SOURCE Whiskey House of Kentucky