Drinks distributor Enotria & Coe has received a major investment by its largest shareholder, Blue Gem LP, clearing its debt burden to pursue further growth.
The refinancing package forms part of the company’s strategy to invest and grow in what it called a 'challenging post-Brexit environment'.
The company eradicated all term debt by transferring its banking arrangements to an entirely asset-based lending structure.
Enotria & Co says the move will remove quarterly debt repayments, dramatically reduce interest costs, and removes performance-based covenants. Total debt was reduced by 70% to £13m after the capital increase and refinancing. Yearly payments of capital and interest have been reduced by over 90%.
Enotria was acquired by BlueGem Capital Partners LLP in 2012. While Enotria Winecellars bought Coe Vintners in 2015. The company says some of the savings it is making will be used to launch a new web platform for customers.
'Enotria & Coe is uniquely positioned to service the UK’s diverse drinks market', Enotria & Coe CEO Troy Christensen said. 'We have an exceptional portfolio which ranges from the world’s largest wineries to hyper-regional new gins, delivered on our own industry-leading fleet and supported by an expert sales and marketing team who work with our diverse customer base to develop and drive their business.
'Over the last three years the shape of the business has been completely transformed, and the structure of this new financing arrangement reflects our new business model, makes us one of the few wholesalers in the market with no term debt, and provides fuel for growth.'
In February, Enotria&Coe announced two new Rioja brands.