The Ardonagh Group (Ardonagh) is exploring options for a comprehensive refinancing of its entire debt portfolio to facilitate further acquisitions, according to a report.
The move, if materialised, would mark one of the most substantial transactions in the realm of private credit.
According to Bloomberg, sources familiar with the matter revealed that the UK-based insurance brokerage is engaged in discussions with lenders regarding the refinancing of existing loans and the establishment of new credit lines dedicated to acquisitions.
As of December 2022, Ardonagh’s outstanding debt amounted to over £3.1 billion, with a significant portion set to mature in 2026, as indicated by the company’s most recent UK filings.
Renowned within the expansive $1.6 trillion private credit market, Ardonagh previously secured the largest-ever loan from a consortium of private credit funds in 2020. Notably, in September, Ares extended a direct-lending package valued at approximately £1 billion to facilitate the divestiture of Ardonagh’s personal insurance business to Markerstudy.
Key stakeholders in Ardonagh include HPS Investment Partners and Madison Dearborn Partners. Spokespeople for both entities declined to provide comments, and Ardonagh has not promptly responded to requests for comment, according to Bloomberg. It is important to note that ongoing discussions with lenders may not necessarily culminate in a finalised deal.
This prospective extensive refinancing initiative emerges shortly after private credit funds recently furnished a record €4.5 billion loan to support the acquisition of Adevinta ASA.
Ardonagh recently acquired ASSEPRO, an independent commercial broker for small and medium-sized enterprises based in Switzerland.
