Ardonagh has also announced the acquisition of three companies from its owners
Ardonagh will in part finance the acquisition of Swinton with the launch of a mirror notes offering of $225m in corporate debt bonds.
Announced today, the 8.625% senior notes are due to be paid by 2023. The issue price will be determined at the pricing of the mirror notes.
As well as aiding the acquisition of Swinton, the money will be used for general corporate purposes, including acquisitions.
The group has also today announced that it has entered into an agreement to acquire three companies from owners HPS Investment Partners and Madison Dearborn Partners.
Minton House Group Limited, Health and Protection Solutions Limited and Professional Fee Protection Limited are those that are acquired by Ardonagh. The purchase of MHG, HIG and PfP will be entirely equity funded.
The proceeds from the offering will be held in escrow pending, among other things, regulatory approval for the acquisitions.
The statement read: “The Board believes these acquisitions to be highly complementary to The Ardonagh Group, providing both cost and revenue synergies once integrated.”
MHG is a specialist education and care broker which generated income of £5.1m in 2017.
HIG is a healthcare specialist broker with a particular focus on SMEs which generated income of £9.2 in 2017.
And PfP is a tax investigation fee protection MGA which generated income of £4.5m in 2017.
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