THE POWERSCOURT DISTILLERY SECURES A €25M LENDING PACKAGE TO SUPPORT THEIR GLOBAL GROWTH

HNH plays a pivotal role in securing an asset-based debt facility for The Powerscourt Distillery

28th June 2023 – Dublin – The Powerscourt Distillery, based in Co, Wicklow, Ireland, today has announced that they have secured an asset-based lending package from PNC Business Credit, thanks to support from the specialist corporate finance advisor HNH based in Edinburgh.

This announcement marks a major milestone in the Company’s strategic growth plan. PNC’s substantial investment underscores strong confidence in Powerscourt’s unique brand, premium quality spirits, and significant global whiskey market potential. The newly acquired capital will be used to bolster the distillery’s production capabilities, enhance brand development and support the expansion into new markets. This funding propels The Powerscourt Distillery into its next phase of growth.

Powerscourt Distillery will use the facility to refinance previous funding and for general working capital as it continues to develop and lay down its high-quality inventory of Irish whiskey.

The award-winning whiskey company appointed Bruce Walker, Director of HNH in Edinburgh, to lead the financing exercise following the successful financings of Lough Gill Distillery, The Hinch Distillery, Aberargie Distillery, GlenAllachie Distillers, Clydeside Distillery and Arbikie Distillery.

HNH advised Powerscourt on securing an inventory-only asset-based fully revolving debt facility on a committed basis for a three-year period. PNC was selected to provide the facility following a process managed by HNH, who are currently working on a number of other M&A and Debt financing transactions across the UK and Ireland.

Roger Duggan, the General Manager of The Powerscourt Distillery, said: “Leveraging our substantial whiskey stocks makes great sense. It will enable us to continue growing at the pace we want and further develop our brand globally. More importantly, it will allow us to achieve our ambitions with greater financial stability and certainty in the years ahead.

Brian Burke, CFO of Powerscourt, added, “We were impressed with the professional management displayed by Bruce Walker and Peter Graham from HNH, and this additional funding will allow us to further increase our production levels”.

Bruce Walker from HNH added: “This deal is a great result for The Powerscourt Distillery and the outcome of a competitive process led locally by the HNH team. We were delighted to work with such a high-quality asset with an outstanding management team with a crystal-clear strategic vision. It was also good to work with PNC again, who were able to deliver a compelling proposal based on their clear understanding of the sector and their desire to build a strong relationship with the team at Powerscourt.”

Situated in the heart of the picturesque Powerscourt Estate in County Wicklow, The Powerscourt Distillery is committed to sustainability, sourcing local ingredients, and preserving the surrounding area’s natural beauty.

The company was established in 2016 and began distilling in 2018, currently selling single malt, grain, and blended Irish whiskey under the Fercullen brand. It released its blended whiskey, Fercullen Falls, in 2022, comprising of whiskey blended at Powerscourt for the first time. In May 2023, they released the first whiskey fully distilled in Co Wicklow in 100 years, Fercullen Single Malt.

Legal advice to Powerscourt Distillery Limited was provided by Daniel Cashman and Edward Evans of Beauchamps LLP and the inventory valuation exercise was provided by Nick Pope of SIA Group. Euan Cluness and Peter Smartt of Addleshaw Goddard LLP provided legal advice to PNC, who were led by Regional Director Alistair Hood.