Cooper Gay Swett & Crawford Limited (“CGSC”), the global wholesale insurance and reinsurance broker, announced the successful completion of a $500m financing exercise from US based investors.
Deal highlights:
– Strong group credit rating at B2/B from Moody’s and S&P respectively
– Attractive pricing driven by strong investor demand
– “Covenant-lite” terms
– New debt secured at group level, combining previously “segregated” debt of c.$425m at Swett & Crawford and Cooper Gay Holdings
– $75m available facility for future investment
– Debt term extended from 2014 to 2020
– Net debt, post refinancing, at c. 4.2x multiple of EBITDA
CGSC Group CFO, Phil Rock, said: “In the first four months of 2013 we have completed a $190m equity transaction and have now finalised our $500m debt financing, which was extremely well received by investors. The “covenant-lite” nature of the new debt deal means that we retain great flexibility moving forward across our group, having removed the cross-border constraints of our previous terms by lifting the debt to the CGSC level.
“After the equity deal with Lightyear Capital and co-investors, we are carrying significant cash balances and we are in a very comfortable net leverage position of c. 4.2x ebitda, with the business producing strong free cashflows.”
CGSC Group CEO, Toby Esser said: “I am delighted we have completed such a successful financing exercise. It’s been a very busy period and I extend my thanks to the CGSC team and group companies who worked so tirelessly on this process. We are very happy with the overall execution. Morgan Stanley Senior Funding, Inc., JP Morgan, Royal Bank of Canada, Wells Fargo and National Australia Bank assisted the company with the execution of the credit facilities.
“With more than $100m surplus cash on our balance sheet, the $75m revolving facility we have secured here, as well as further debt and equity we have available, we have in excess of $300m of financial resources ready to invest in our business. We will do so carefully as we have always done, but we are entering an exciting phase of our development and I expect to see strong growth over the next few years.”
