AUB Group says the business is ready to “capitalise” on organic and inorganic growth opportunities, after its existing $675 million syndicated debt facility was refinanced and raised to $850 million.

The $175 million increase in facilities is largely reflected in the new $300 million multi-currency revolving credit line, which has increased from $150 million, the listed broking group said today in a statement.

“The new syndicated debt facility is one of AUB’s key funding sources, providing the Group
with continued financial flexibility to fund its M&A pipeline, working capital, liquidity requirements, as well as interest savings,” MD and CEO Mike Emmett said.

He says the refinancing was “significantly” oversubscribed, with participation from a diverse mix of global and domestic commercial banks and local credit institutions.

The interest from banks and credit institutions reflected their “strong support” for AUB following its strong financial results and “successful” integration of Tysers, Mr Emmett said. 

AUB completed its $880 million acquisition of Tysers, a UK-based Lloyd’s wholesale broker, in 2022 and AUB’s underlying net profit in the last financial year went up 74.4% to $129.1 million, lifted partly by contributions from Tysers.

In a syndicated debt facility, financing is offered by two or more lenders that work together to provide credit to a borrower.