New Towergate group KIRS prices debt issuance to finance acquisitions

Insurance intermediary KIRS Group priced its  offering of £400 million in aggregate principal amount of 8.375 percent Senior Secured Notes due 2023 and $520 million in aggregate principal amount of 8.625 percent Senior Secured Notes due 2023.

KIRS is a newly created holding company set to combine Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate. The group is backed by private equity firms HPS Investment Partners and Madison Dearborn Partners. KIRS will be rebranded in the third quarter of 2017.

The Group intends to use the net proceeds of the debt issuance to repay outstanding debt, but also to finance the acquisitions of Chase Templeton and Ryan Direct Group.

Commenting on this update, chairman John Tiner said: “This result represents a strong vote of confidence in the new Group and its leadership. Our strategic vision for the newly enlarged Group has been endorsed by a diversified and high quality global investor base which is strongly supportive of the calibre of our team and the potential of our business. The new capital structure significantly increases our financial flexibility and access to capital.”

David Ross, CEO added: “The combination of these businesses, underpinned by our comprehensive and very focused plans for the group has led to the KIRS vision being positively received as a long term, sustainable investment opportunity. We are delighted that the Group we are creating has the backing of a broad base of new global institutional investors who, alongside our committed shareholders, will provide stable support for our growth plans. Every person in this group has played a part in getting us to this stage and I could not be prouder or more excited for the future"

"We now move on to creating a new brand identity for the group, protecting the specialist nature of our individual brands, whilst uniting the power of businesses we have within the group."

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