Ian Macleod Distillers agrees £60m bank loan

Glengoyne Scotch whisky producer Ian Macleod Distillers has secured a £60 million business loan from a consortium of banks to finance its growth strategy.

Ian Macleod Distillers, owner of the Glengoyne Scotch whisky distillery, has agreed a £60m business loan

A club syndicate of banks led by the Royal Bank of Scotland’s Asset Based Lending team and Bank of Scotland has agreed a £60m asset based lending deal with Ian Macleod, meaning the group has secured the loan against its inventory of whisky stocks.

The group will use the funds to assist its on-going growth strategy and refinance existing debt.
“We have been working with both banks since 2013 and enjoy a very good working relationship,” said Mike Younger, finance director Ian Macleod Distillers. “The new funding package streamlines our borrowings and provides us with useful headroom to fund future projects as well as the underlying growth of the business.

“I am delighted to have both banks involved as it gives the company the comfort that we are, and will be, strongly supported. I am also confident that further significant funding will be available should it be needed.”

Ian Macleod secured a “substantial” loan through the Bank of Scotland in 2013 to construct six additional bonded warehouses at its Tamdhu distillery in Speyside.

The group, which produces the Glengoyne, Tamdhu, Isle of Skye and Smokehead Scotch whisky brands, among others, currently sells more than 15m bottles of spirits annually and is the 10th largest Scotch whisky company. It has a turnover of £60.5m and employs 111 people across its two distilleries in Glengoyne and Tamdhu, and head office in Broxburn.

“Ian Macleod Distillers is a well-established and award winning distillery and one we are very proud to support,” said Will Airey, relationship director, Royal Bank of Scotland Asset Based Lending.

“They have recorded impressive growth over the last five years and the team are focused on building on this success and expanding the business further.

“The Asset Based Lending funding line works very well both with this business and within this sector. The new facility gives the business the confidence to continue its expansion because it is linked to assets and the funding can be increased as the business grows.”