Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a620142
Towry agrees £47.3m debt package with RBS and Macquarie
by Jun Merrett on Sep 21, 2012 at 07:50
National IFA Towry has agreed a £47.3 million financing package with the Royal Bank of Scotland (RBS) and Macquarie Bank.
The debt issuance was arranged by Towry's parent company Palamon Capital Partners and is composed of £42.5 million of senior and junior loans from Macquarie and £4.8 million of senior debt from RBS who was already a lender for Towry. It has been used to replace a mezzanine debt facility.
Towry chief executive Andrew Fisher (pictured) said the debt agreement would help power further expansion of the group. 'The new lending facilities that we announce today significantly reduce our financing costs and provide a sound capital structure for further expansion of the company,' he said. 'Our finance team has put in an exceptional amount of work in order to secure these loans, which we believe will help us to achieve our ambition of becoming the leading firm of wealth advisers in the UK.'
Daan Knottenbelt, partner at Palamon Capital Partners, said: 'The improved efficiency of the capital structure of Towry is a testament to the strength of its business, which since our initial investment has grown assets under management by almost 40% per year to £4.6 billion through a combination of organic growth and strategic acquisitions.
'The financing structure provides a sound basis from which further expansion can take place to continue the company’s high rate of profit growth and solidify its position as a national leader in the IFA sector.'
Florian Herold, co-head of Macquarie European Lending said: 'We believe Towry is a well-regarded, high-growth company with strong recurring revenue streams. Working closely with the management team at Towry and Palamon, we are delighted to have been able to develop and put in place a financing structure that meets their specific needs.'
Towry advises on around £4.6 billion of assets for 25,000 clients.
News sponsored by:
Today's top headlines
- Sunday Papers: Shell warns against commodity market regulation
- Saturday Papers: Backlash to hit scandal-tainted City
- Lights, camera, action! Widows and Helm launch film pension scheme
- High Court judge imposes freezing order on Harlequin bosses' assets
- Tenet scraps five-day Twitter checks with new social media policy
More about this article:
More from us
- Towry's Fisher named in Times tax investigation
- Towry hit with £2.3m bill after Raymond James case
- Towry ups fees for wealthiest clients
by Himanshu Singh on May 19, 2013 at 03:08