View more on these topics

Towry agrees £47.3m refinancing deal

Andrew Fisher 480

Towry has agreed a £47.3m refinancing deal with Macquarie Bank and Royal Bank of Scotland to boost capital and drive the growth of the business.

The proceeds of the debt issuance, made up of £42.5m in senior and junior loans from Macquarie and £4.8m of senior debt from existing lender RBS, were used to repay an earlier mezzanine debt facility.

Towry chief executive Andrew Fisher (pictured) says: “The new lending facilities significantly reduce our financing costs and provide a sound capital structure for further expansion of the company.

“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.”

Towry posted an operating profit of £10.2m in 2011 compared with a £5.5m loss in 2010. The loss was attributed to £17.7m in costs related to the integration of Edward Jones, which it acquired for £1 in October 2009. Towry was hit with litigation costs of £2.3m following its failed court case against Raymond James and seven former Edward Jones’ advisers alleging client solicitation.

In February, a High Court judge dismissed all charges brought by Towry and ordered it to pay Raymond James’ full legal costs of £1.2m, on top of its own legal costs of £1.1m.

In November 2010, Towry said it wished to float during 2011 but the company was forced to postpone due to market volatility. In March, Fisher said Towry was looking revive its flotation bid over the next 18 months if markets become less volatile.

Facts and Figures Financial Planners managing director Simon Webster says: “It seems as though Towry has refinanced a part of its existing debt book at a softer rate, which will push up its operating profit and make it a more attractive flotation prospect. It is encouraging there are lenders who are prepared to support financial services businesses.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm