Bond issuance downsized from £570m
Early indications suggest that the two parts of Towergate's planned £520m bond offering will have yields of 8.75% and 10.75%, Dow Jones reports.
The bond issue's firm pricing is expected today, and is part of Towergate's pre-flotation refinancing plan. The bond issue has been downsized from £570m because the company increased the loan portion of the plan.
Citing one of the banks running the transaction, Dow Jones reported that discussions between dealers and investors were putting the yield for the £230m senior secured portion of the offering at 8.75% and the yield for the £290m senior unsecured portion at 10.75%.
JP Morgan, Credit Suisse, Goldman Sachs and Lloyds Banking Group PLC are lead managers of the deal.
Rating agency Fitch has assigned a provisional rating of BB to the senior secured notes and B- to the unsecured portion of the offering. Moody's has provisionally rated the secured portion B1 and the unsecured portion B3.
Towergate's refinancing also includes a revolving credit facility, two term loans and an acquisition facility. In addition, private equity firm Advent has made a £200m investment in the broker.
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