Burn Stewart Distillers Ltd (BSD) has embarked on a new refinancing with KBC Business Capital, consisting of a £31m Integrated Asset Based Lending (ABL) refinancing package and new banking facilities.

KBC Business Capital structured the new innovative ABL facility by recognising the benefit of linking the value of assets including brands, inventories and distilleries so that when combined, the value and security was enhanced.

Fraser Thornton, managing director at BSD said: "By using the most valuable asset in our balance sheet, our Scotch inventory, we have put in place a banking structure with sufficient flexibility to support the growth aspirations of the company."

Paul Hooper, Sales Director at KBC Business Capital, who led the transaction alongside Regional Director Karl Holmes, commented: “Utilising this methodology allowed us to generate significantly more headroom and a funding structure more appropriate for the sector than had been available under more traditional financing methods."

Intangible Business, a firm of valuation consultants who specialise in the valuation of beverage brands and inventory assisted KBC Business Capital following an introduction by their strategic partners at Go Industry. Stuart Whitwell, joint managing director of Intangible Business commented: “We are delighted to have supported KBC with this transaction and to be able to demonstrate our capability to prove the market value of complex inventories and brands and how these are connected and support the marketability of the assets securitised. Our ongoing efficient and regular asset quality review programme will alslos help to facilitate the long term nature of the facility."

Wragge & Co. provided legal advice to  KBC. Paula Laird, a partner at Wragge & Co, commented: "The asset classes here were diverse -  from the Scottish real estate, to the IP rights and the stock in hand. A lot of negotiation took place to ensure that KBC's security package remained watertight, while allowing the borrower the flexibility to use the assets."

Maclay Murray & Spens, led by Robert Laing, acted for BSD during the transaction. Mr Laing said "The asset backed nature of this deal gave our client additional flexibility both for core financing purposes and for managing their working capital."