Howden Group, a global insurance and reinsurance intermediary, has completed the issuance of a $690 million add-on to existing $500 million 8.125% Senior Notes due 2032, in a private offering.
The offering was conducted under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the U.S. Securities Act).
The additional notes were issued at 101.875% for gross proceeds of approximately $703 million.
These proceeds will be used to further strengthen the company’s funding for future growth investments, according to the announcement.
The additional notes are anticipated to be listed on the Official List of The International Stock Exchange.
Mark Craig, Group Chief Investment Officer, Howden, commented: “I’m delighted with the outcome and strong support from the capital markets. This successful transaction follows our high yield bond issue in February 2024.
“We received strong demand and priced the offering above par, benefitting from continued confidence among credit investors in Howden’s sustained performance and growth plans.”
Howden also recently successfully repriced and upsized its debt facilities, totalling approximately US$3 billion, a move that aims to support global expansion.
This significantly lowers the group’s borrowing costs, with interest margins in its USD and EUR term loans cut by 75 and 25 basis points, respectively.
The €1 billion EUR Term Loan B facility was also refinanced, with the margin reduced by 25 basis points to 325 basis points over EURIBOR.
In parallel, the facility was expanded by €160m to €1.16bn, reflecting investor demand. The increase provides additional liquidity to support future growth plans.
