07 April 2015
Towergate Insurance (“Towergate” or the “Company”) is pleased to announce that it has today successfully completed its financial restructuring and recapitalisation, providing the Company with a robust platform from which to expand further its market-leading position in the UK insurance intermediary space.
Towergate emerges with a substantially deleveraged capital structure, through a 60% reduction in net debt and the provision of additional liquidity resources totalling £125 million. Furthermore, the Company benefits from the addition of several high calibre new hires who are going to join its senior management team in the coming months. Together, these will greatly help the Company deliver its strategic plan.
As part of the successful recapitalisation, the majority ownership of the Group has today been transferred to funds or accounts managed or advised by Highbridge Principal Strategies, LLC (“Highbridge”), KKR Credit Advisors (US) LLC, Sankaty Advisors, LLC and other funds which were formerly senior unsecured and senior secured creditors.
Commenting on the transaction, Scott Egan, Interim CEO of Towergate, said:
“We are delighted to announce today the successful completion of our restructuring and recapitalisation process. The final outcome is very positive for all stakeholders, as we are now on a much more solid financial footing and we can therefore refocus entirely on capturing the significant opportunities we see in the market.
“The new owners of the Group, led by Highbridge, have demonstrated through their substantial investment their confidence in Towergate as a market leader and in our people’s ability to create superior value thanks to the strength of our platform.
“Once again I would like to thank our employees, insurer partners, suppliers, and clients for their continued support throughout this process.”
Scot French, Partner at Highbridge, said: “The completion of the restructuring concludes a long period of operational and financial uncertainty, and provides the Company with a much improved capital structure, ample financial resources and a top quality management team.
We believe that Towergate’s strong presence in the UK SME insurance brokerage market remains unparalleled and is the ideal foundation for the next phase of growth and development of the Company.
We are very excited for the opportunities that lie ahead and look forward to support Towergate and its management team in the implementation of the new strategic plan”
Launched in 1997, Towergate is the UK’s largest independently owned insurance intermediary, generating more than £3 billion of pro forma gross written premiums across its companies and employing over 5,000 people across more than 100 UK offices. Towergate is an important distribution channel for a significant range of insurance products and a key strategic partner for the UK’s largest insurers.
Towergate’s scale, customer insight and distribution relationships make it a unique business and a leader in the markets in which it operates. Its combination of distribution and underwriting gives it unparalleled consumer data and market insight.
Towergate operates across five core divisions:
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