Senior secured portion of the bond offering priced at 8.5%

Towergate is planning to announce the completion of its various refinancing transactions at the end of this week, Insurance Times understands.

The refinancing package includes a £520m two-part bond issue, a £310m two-part term-loan portion, a £90m acquisition facility and a £10m revolving credit facility. Towergate secured a £200m investment from private equity firm Advent in connection with the refinancing, which the broker is undertaking as part of its plans for an initial public offering.

Towergate successfully priced the £230m senior secured portion of the bond offering at a yield of 8.5% on Friday, while the yield for the £290m senior unsecured portion was set at 10.5%.

This compares favourably with the terms Towergate expected for its abortive £665m bond issue last May. Insurance Times understands that the expected range for the senior secured portion of May’s planned issue was between 9.5% and 10%.