Completion of long-term refinancing programme - £930 million of new debt facilities and £200 million equity investment from Advent International

Towergate, Europe’s largest independent insurance intermediary, is pleased to announce the completion of its previously announced refinancing and £200 million investment from Advent International (“Advent”), the global private equity firm.

The long-term refinancing includes a £520 million corporate bond issue and £410 million of new bank debt facilities, of which £90 million will be used for acquisitions. The refinancing has resulted in Towergate’s total borrowings being reduced by over £100 million. The refinancing has also extended Towergate’s debt maturity profile. The new long-term financing, along with investment from Advent, will strengthen Towergate’s balance sheet and enable it to move forward with its business plan.

Following launch on 31 January 2011, the £520 million corporate bond issue, which was led by JP Morgan and Credit Suisse, priced on 4 February 2011. The £410 million bank facility has been agreed with a consortium of banks led by Lloyds Bank Corporate Markets and Goldman Sachs. Final repayment of the bank facility is due in 2017, with the bonds due in 2018 and 2019.

Following the completion of the refinancing, Humphrey Battcock, Managing Partner, and Nick Rose, Director, of Advent International, together with Alastair Lyons, have joined Peter Cullum and Andy Homer on the Board of the Towergate holding company.

Peter Cullum CBE, Chairman and Founder of Towergate, commented:

“I am delighted to announce the completion of our long-term refinancing which cements the investment from Advent. The speed at which we were able to complete this refinancing, and the terms on which it was agreed, are testament to our business model and leading positions in our chosen fields. This provides the firepower to accelerate our ambitious growth plans, putting us in great shape to achieve our future goals.”

Andy Homer, CEO of Towergate, said:

“In the few days we were in the market, investors showed overwhelming support for our business and the future potential with Advent on board. We were very pleased with the support from our leading banks Lloyds Bank, JP Morgan, Credit Suisse and Goldman Sachs in this transaction. We are ideally positioned to take advantage of the many opportunities we see for growth and acquisitions, and will continue to invest across our businesses.”