Expansion and Growth Capital


MGP Ingredients, Inc., headquartered in Atchison, KS, is a producer and supplier of premium distilled spirits, specialty wheat protein and starch food ingredients.

Prudential Capital Group’s relationship with MGP began in early 2017 with a meeting to discuss MGP’s business model and their future capital needs. MGP had previously used a combination of cash flow generation and borrowings under its bank credit line (“revolver”) to fund a warehouse expansion project and to build up an aged whiskey inventory. In 2017, MGP elected to borrow long-term, fixed-rate senior debt from Prudential Capital Group to term-out a portion of its revolver borrowings as well as to fund incremental investment in capex and aged whiskey inventory. Having long-term useful lives, these investments fit Prudential Capital Group’s long-term, fixed-rate offerings.

Prudential Capital Group ultimately established a $75 million Pru-Shelf facility and funded an initial draw of $20 million long-term, fixed-rate senior debt. MGP also partnered with a bank to replace its existing revolving credit facility, increasing the company’s borrowing limit.

Prudential Capital Group’s ability to provide the entirety of the fixed-rate debt at competitive pricing enabled MGP to maintain a close-knit lender group with a single capital provider for fixed-rate debt and a single bank for floating-rate debt. MGP also valued Prudential Capital Group’s relationship-focused approach and the Pru-Shelf’s ability to support the company’s future growth plans.