Towergate completes debt refinancing

Towergate Insurance has completed the refinancing of its debt after closing its bond offering.

The insurance intermediary announced today that the refinancing exercise had been successful and said the bond offering had received “substantial” institutional investor support and was “heavily oversubscribed”.

Towergate leaders said the firm took the decision to refinance its debt after receiving positive market feedback on its financial results for 2012-13 and in light of strong debt markets.

The refinancing had not increased the level of debt and existing banking facilities had been replaced with bonds. Following the bond issue, the overall level of interest payments had fallen marginally and the debt maturity period has been extended to 2018.

Towergate Insurance Group chief executive Mark Hodges said: “This successful refinancing is a significant demonstration of support for our business strategy and the progress we are making towards our stated aims.

“Our bond financing terms are more flexible than bank debt facilities, with less restrictive covenants in place. This more flexible structure has been achieved without increasing the overall debt of the group and is better suited to supporting our long-term growth strategy.

“In addition, a new revolving credit facility will also give us further access to funds that will continue to finance our ongoing mergers and acquisition activity, with six deals being completed so far in 2013.

“We are delighted to have received such strong support from our stakeholders, both old and new, and remain confident in the growth prospects for the group.”