The Group Launches £800 million Bond Offering

KIRS Group Limited (“the Group”)¹, the UK’s leading independent insurance intermediary group being created by HPS Investment Partners (“HPS”) and Madison Dearborn Partners (“MDP”), today announced the launch of a secured bond offering for an aggregate principal amount of £800 million, alongside committing to enter into a £90 million super senior revolving credit facility.

The Group intends to use the net proceeds to refinance existing debt, to finance the acquisition of both Direct Group and Chase Templeton as already announced, pay transaction costs and place incremental cash on its balance sheet.

The Group will be created by the bringing together of Autonet, Chase Templeton¹, Direct Group¹, Price Forbes and Towergate. The Group will harness market leading positions spanning the breadth of UK general insurance and will have a global reach to serve international clients.

Commenting today, John Tiner, Chairman² of the Group said:

"The management team has held a number of successful meetings with potential and existing investors globally over the course of the last couple of weeks. The response to the creation of the KIRS Group, given its ability to broaden its services to clients and provide a platform for further expansion has been positive.”

David Ross, CEO² added:

“The unveiling of the KIRS vision is proving to be the momentous shake up of UK General Insurance we always envisioned it would. During these early, critical days of this Group, we are delighted by the feedback and support we have had from our people, peers and industry at large, all of whom have welcomed the news.”

Bank of America Merrill Lynch will act as Global Coordinator and sole physical bookrunner for the bond offering. Barclays, Credit Suisse, Goldman Sachs and KKR Capital Markets will act as joint bookrunners for the bond offering.

This announcement contains inside information by KIRS Finco plc under Regulation (EU) 596/2014 (16 April 2014).

¹Subject to regulatory approvals and other customary conditions to completion

²Subject to usual regulatory approvals and completion of the formation of the Group