Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 315

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 315
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 |   |     |   |            — |   |
| Total Notes Payable                  |     |   |   14,669,280 |   |     |   |   14,602,343 |   |
| Less: Debt Issuance Costs            |     |   |     (398,324 | ) |     |   |     (718,872 | ) |
|                                      |     | $ |   14,270,956 |   |     | $ |   13,883,471 |   |

In March and September 2021, the Company executed
a secured term loan agreement and an amendment with Silverview Credit Partners, L.P. (the “Silverview Loan”) for an aggregate
borrowing capacity of $. The Silverview Loan matures on April 15, 2025. The Silverview Loan accrued interest through the
18-month anniversary of the closing date at (i) a fixed rate of %, which portion was payable in cash, and (ii) at a fixed
rate of %, which portion was payable in kind and added to the outstanding obligations as principal. Effective on the 19
month anniversary of the closing date, the Silverview Loan accrues interest at a fixed rate of % through maturity. Interest payable
in cash is required to be repaid on the fifteenth day of each calendar month. The Company had an option to prepay the Silverview
Loan with a prepayment premium up to % of the obligations during the first twenty-four months of the loan, after which time the
Company can prepay the loan with no premium due.

The Company is now past that initial twenty-four-month
window and can prepay all or some of the outstanding balance without penalty. The Silverview Loan also contained certain financial and
other debt covenants that, among other things, impose certain restrictions on indebtedness, liens, investments and capital expenditures.
The financial covenants required that, at the end of each applicable fiscal period as defined pursuant to the Silverview Loan agreement,
the Company either had (i) an EBITDA interest coverage ratio up to to , or (ii) a cash interest coverage ratio of not
less than to . Commencing with the fiscal quarter ending June 30, 2021, the Company was to maintain liquidity of not less
than $. The Silverview Loan may be used for general corporate purposes, including working capital needs and capital expenditures.

The Company violated various financial and other
debt coven