Excess Spread — Mashed Swede, drop it, exchange offer

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Excess Spread — Mashed Swede, drop it, exchange offer

Owen Sanderson's avatar
  1. Owen Sanderson
10 min read

Mashed Swede

The troubles of Europe’s largest debt collector Intrum have been taking up lots of time at 9fin HQ — last week’s announcement that it had appointed Houlihan Lokey and Milbank to advise on debt structure options sent the bonds off a cliff (the 2027s and 2028s are trading in the mid-50s).

Here’s a quick primer on the situation (ping me if you want a copy) and a follow-up on next steps, but at a high level, we’re talking about not enough assets and too much debt — Intrum has roughly SEK60bn (€5.28bn) of gross debt versus book value assets of SEK35bn, and a servicing business which is worth… something.

Whether you value servicing on a doValue multiple starting with a 3x, or a Prelios multiple at 9x matters quite a lot for assumed recoveries!

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