Intrum Agrees $5.4 Billion Debt Restructuring to Fix Rising Woes
- Firm signs lock-up deal with more than 50.1% of noteholders
- Package includes issuance of new bonds and ordinary shares
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Swedish debt collector Intrum AB has reached an agreement with a majority of its bondholders to address its €5.4 billion ($5.8 billion) debt pile, including a forced loss on credit investors and pushing out the notes’ maturities.
As part of the deal, the company’s existing unsecured notes will be exchanged into four series of new bonds with maturities between 2027 and 2030, but only at 90% of their original value, according to a statement on Thursday. In exchange for the haircut, bondholders will get 10% of Intrum’s equity. The company said it will also sell €526 million of new senior secured bonds, some of the proceeds of which will be used to buy back the exchanged debt.