Intrum - comment

Well, are we glad that we are no longer in the equity this morning… Intrum creditors have finally agreed to disagree as this morning’s proposal confirms that the 24s will receive par, the RCF will be slightly paid down, extended and strengthened, that the PPNs and Term Loans remain unaffected and that all other notes, including the 25s, will convert 10% into 10% of the equity and roll 90% into one new cluster of notes with a paydown ratched that will be only slightly easier to achieve than the current cascade of maturities. There will be a small new money feature on a 1.5 Lien basis. We see this as a win for the 24s and otherwise as a significant value transfer from the short end to the long end.