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  "docSlug": "c4de14509091",
  "documentTitle": "MGP Ingredients, Inc. (MGPI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-01-12 00:00:00",
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  "notes": "The slide highlights specific legal definitions from the 3rd Amended Credit Agreement to support the thesis of credit risk.",
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      "kind": "callout",
      "text": "To the extent its whiskey value declines or ‘storage losses’ result in lost inventory, MGPI’s borrowing base would shrink and mandatory prepayment risk increases",
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      "text": "Investors should pay careful attention to MGPI's credit agreement. It has a fixed charge covenant and requires mandatory pre-payments if the revolver usage exceeds the borrowing base. The covenant ratio would be impacted heavily if MGPI's EBITDA declines (from possible customer losses we highlighted) or tax penalties increase (from the TTB audit). The borrowing base is increasingly being driven by MGPI's barreled whiskey distillate. To the extent its whiskey value declines or 'storage losses' result in lost inventory, MGPI's borrowing base would shrink and mandatory prepayment risk increases",
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      "text": "Source: 3rd Amended Credit Agreement, March 2016",
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      "text": "Key Credit Issue: Fixed Charges, Terms and Conditions: [Definitions of Fixed Charges and Fixed Charge Coverage Ratio]. Key Credit Issue: Borrowing Base, Terms and Conditions: [Mandatory Prepayment clause].",
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      "kind": "title",
      "text": "Other Credit Implications",
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