Other banks involved in Towergate refinancing deal
The Royal Bank of Scotland (RBS) will continue to play a part in Towergate Partnership following its refinancing, but "certainly won't be the only one", said the company.
Investment banks Lloyds TSB, RBS and Barclays, which are currently involved in Towergate, but not Folgate, are expected to play a role in the merged and refinanced organisation.
Towergate Partnership chief executive Andy Homer said a deal had been agreed with RBS and that the bank would continue to be involved.
But he said the company was yet to finalise arrangements for refinancing its estimated £350m debt. A decision is expected during June.
Homer denied that the refinancing deal would be in place for only two years, leading up to an initial public offering (IPO). "We have never denied that an IPO will be a possibility, but the financing will go beyond two years. It will last for three to five years.
"It is not for certain that we will issue an IPO in 2007/2008," he added.
This week Towergate also purchased the renewal rights to BPS Insure's personal and commercial books. The deal is worth £20m in gross written premiums.
The FSA announced the purchase after BPS was forced into administration due to a deficit in its client money account.
Towergate confirmed that it undertook initial talks with BPS over a possible acquisition prior to administration.
Homer said it became clear that BPS would encounter difficulties with the client money rule before the discussions reached the due diligence stage, at which point the FSA became involved.
The deal to acquire BPS' book was concluded within three days, said Towergate. All BPS staff, in 11 branches, have transferred to Towergate.
At the same time Towergate is to consolidate its London offices in the old Swiss Re building on Leadenhall Street during the next two months.
Approximately 100 people will use the new office, including Towergate's recently launched professional indemnity unit.
