Towergate Insurance completes restructuring, reduces net debt by 60%

By Caroline Salls

Pittsburgh, April 8 – Towergate Insurance completed its financial restructuring and recapitalization, providing the company with a platform from which to expand further its position in the U.K. insurance intermediary space, according to a company news release.

Towergate said it is emerging with a substantially deleveraged capital structure through a 60% reduction in net debt and the provision of additional liquidity resources totaling £125 million.

In addition, the company said it benefits from the addition of several new hires who will join its senior management team in the coming months.

As part of the recapitalization, the majority ownership of the Towergate group has been transferred to funds or accounts managed or advised by Highbridge Principal Strategies, LLC, KKR Credit Advisors (US) LLC, Sankaty Advisors, LLC and other funds, which were formerly senior unsecured and senior secured creditors.

“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,” Towergate interim chief executive officer Scott Egan said in the release.

“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.

Highbridge partner Scot French said in the release, “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 U.K. SME insurance brokerage market remains unparalleled and is the ideal foundation for the next phase of growth and development of the company.”

Towergate is an insurance provider located in London.

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