The transaction, completed on August 8, marks a key financial milestone for the company, lowering borrowing costs amid favorable market conditions.
Under the new terms, the margin on the Term Loan B was cut by 25 basis points to 275 basis points over SOFR, while the RCF margin was repriced concurrently. This refinancing move is expected to generate approximately $8 million in gross annualized savings, enhancing Howden’s financial efficiency.
Mark Craig, Group Chief Financial Officer at Howden, highlighted the significance of the deal, stating, “We have achieved one of the tightest pricing levels for leveraged loans by an insurance broker in this ratings category, demonstrating strong support from capital markets. This improved borrowing efficiency positions us well to pursue our ambitious growth plans.”
Craig also emphasized Howden’s market position and growth trajectory: “Our leverage remains below many of our peers, and our organic growth, fueled by a differentiated business model, outpaces listed competitors. We are executing this strategy globally, including recent plans to expand into the U.S. retail insurance broking market.”
The successful refinancing reflects continued confidence from blue-chip institutional lenders and banks in Howden’s credit profile and growth prospects, supporting the company’s ongoing expansion efforts.
