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Case Study

Highland Spring

Posted: 3rd August 2022   |   Share


Leumi ABL participates in innovative £53.4m funding package for Highland Spring in club lending transaction with BREAL Zeta

Leumi ABL are delighted to have been involved with BREAL Zeta, in providing a comprehensive funding package totaling £53.4m for renowned consumer brand, Highland Spring.

Established in 1980 and employing over 400 members of staff, Highland Spring is the leading natural source water brand in the UK, producing more than 500 million litres annually from a catchment area of over 2,500 acres of the Ochil Hills in Perthshire, Scotland.

The ABL funding package included asset-based commitment from Leumi under an innovative FIFO arrangement comprising Facilities of £15m invoice discounting, £3m inventory, £5.2m plant & machinery and £3.1m property. BREAL Zeta provided a £28m cashflow loan with the Facility structured to support significant growth plans, including growing the Highland Spring brand, expanding its product portfolio and supporting its continuing journey toward net zero.

Commenting on the transaction, Mark Steven, Joint Managing Director of Highland Spring, said: “We knew we weren’t looking for a standard banking package linked to traditional facilities but it was difficult to know what good was going to look like until a different and innovative package emerged. The BREAL and Leumi offering considered the investment plans of the business and matched Facilities to the profile required in the future, not just the present. They have been supportive, straightforward and pragmatic to work with as lending partners.”

Raed Hanna, Managing Director of MFL Finance Limited and adviser to shareholders commented: “Mutual Finance was delighted to collaborate with all parties on this deal to complete a complicated corporate debt facility. Both BREAL and Leumi have showed a pragmatic and proactive approach to structuring the optimal facility for our prestigious client, Highland Spring, in a volatile banking market. This complex solution worked for all and will form the beginning of a strong, long-term lending relationship.”

Martin Risman, Leumi ABL Regional Sales Director, adds: “It has been a pleasure to work with BREAL and the excellent team at Highland Spring on this transaction. Management and all the advisors have worked together seamlessly to deliver what we consider the prime funding structure that will allow the management team the financial freedom to execute on their growth plan. We are delighted to support these exciting future plans of a market leading brand.”

Addleshaw Goddard provided legal advice to Leumi and BREAL Zeta. Collateral due diligence was provided by Hilco Valuation Services. Burness Paull provided legal advice to Highland Spring on the transaction. Shareholder advice was provided by Mutual Finance.