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