Ardonagh refinances debt and boosts war chest

Broking group Ardonagh has refinanced its debt structure to £2bn from £1.2bn enabling it to complete the acquisitions of the Bravo Group, the Arachas Group and Bennetts Motorcycling Services. The new financing includes a £300m delayed draw facility to support future mergers and acquisitions.

The Bravo Group includes Broker Network, Compass and Ethos Broking. The Arachas Group is an SME-focused commercial insurance broker in Ireland

In a statement the company explained that it planned to enter into “a credit facility agreement in respect of a senior secured term loan facility for an amount of £1,575m, a committed capital expenditures facility for an amount of £300m and a revolving credit facility for an amount of £171.5m.”

Both the term facility and the committed capital expenditures facility are being provided by direct lending funds managed by Ares Management Corporation, Caisse de dépôt et placement du Québec, HPS, KKR, Oaktree Capital Management, LP, Owl Rock Capital and certain other institutional lenders. The revolving credit facility is being provided by international banks, including existing lenders to the group.

The proceeds of a £400m Notes offering, together with drawings under a new senior secured term loan facility of £1,575m will be used to redeem the group’s existing Notes redemption; to repay drawn amounts under the existing revolving credit facility agreement; to fund the acquisitions of the holding company of Bravo Investments Holdings, the holding company of Arachas Topco, and to fund the acquisition of Bennetts Motorcycling Services.

David Ross, chief executive of Ardonagh, commented: “Today’s announcements represent an important step in the continued development of Ardonagh’s multi-product and multi-channel platform through sustained focus on organic growth and selective acquisition strategy, as we continue in our ambition to excel as the largest independent insurance broker in the United Kingdom and amongst the largest globally.”

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