Howden Group has reduced the cost of its borrowing through the repricing of a US$3.1 billion term loan B and a £765 million revolving credit facility, securing around US$8 million in expected annual savings.
The insurance broker said the transaction, completed on August 8, lowered the term loan B margin by 25 basis points to 275 over SOFR, with the revolving facility repriced at the same time. The group cited favourable market conditions and continued credit investor confidence.
Chief financial officer Mark Craig said the outcome was “one of the tightest pricing levels for leveraged loans by an insurance broker” in its ratings category. He added that more efficient borrowing would strengthen the group’s position to deliver its growth plans.
Howden’s debt carries B2 Stable and B Stable ratings from Moody’s and S&P respectively, with no refinancing due until 2030.
The refinancing follows a period of sustained growth. For the year ending September 30, 2024, Howden reported adjusted revenue of £3.01 billion, up 23% year-on-year, with organic growth of 15%. The group operates in 55 countries, having expanded into Australia, Greece, the Middle East, Singapore and Japan over the past year.
Earlier in August, Howden announced its entry into the US retail broking market, appointing Mike Parrish as chief executive of Howden US and Jim Hays as vice-chairman of Howden Group Holdings. The move is part of its plan to replicate its employee-ownership model in new markets.
Founder and chief executive David Howden also recently confirmed the company’s private valuation exceeds £10 billion, including £300 million in employee share transactions. Around 30% of staff hold shares in the firm, which ranks among the UK’s largest employee-owned businesses.
Craig said lender support for the refinancing, completed in the same week as the US announcement, reflected confidence in Howden’s growth trajectory.
