Howden Group, a global insurance and reinsurance intermediary, has completed a US$690 million add-on issuance through a private placement on top of its existing US$500 million 8.125% senior notes due 2032.
The offering is being made pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the U.S. Securities Act).
Additional notes were issued at 101.875%, raising total proceeds of approximately $703 million.
The announcement stated that these proceeds will be used to further strengthen the company’s funding sources for future growth investments.
The additional notes are expected to be listed on the official list of international stock exchanges.
Mark Craig, Chief Investment Officer at Howden Group, commented: “I am delighted with this result and the strong support from the capital markets. This successful transaction follows our high-yield bond issuance in February 2024.
“We have received strong demand and priced the issue above average, driven by credit investors’ continued confidence in Howden’s continued performance and growth plans.”
Howden also recently successfully repriced and expanded its debt financing to approximately $3 billion, a move designed to support global expansion.
This significantly reduced the group’s borrowing costs, with spreads on USD and EUR term loans reduced by 75 and 25 basis points respectively.
The €1 billion Term Loan B Facility was also refinanced and its margins fell 25 basis points to EURIBOR to 325 basis points.
At the same time, the size of the facility was expanded by €160 million to €1.16 billion, reflecting investor demand. This increase provides additional liquidity to support future growth plans.
