Intrum - comment

Intrum has reached an agreement in principle with over 75% of its RCF lenders on terms we find advantageous to Intrum. The level of detail provided in the communication yesterday was scant, but on the surface, the margin is lower than expected and the ratchet is applied to the leverage ratio instead of LTV. 

This is good news for Intrum and leaves largely only the notes to be resolved. As we have written before, we think this deal will come together, because the short-end is gradually reducing while the long-end is predominantly locked up. But Intrum also still need long-end holders to come forward.