Debt purchasers dip into market to prep for NPL rush

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By Owen Sanderson
24 Sep 2020

Debt purchasing firms are repeatedly hitting the high yield market to prepare their capital structures for the likely wave of portfolio sales as pandemic support schemes roll off, with France’s iQera the latest in the market. But some companies in the sector are in no position to refinance, such as Lowell which is effectively shut out of the market with its own credit concerns, raising questions about whether these companies can compete for post-Covid loan sales.

JP Morgan is leading a €200m 2024 for iQera, owned by BC Partners, which will use the cash to repay revolver drawings, refinance a €75m floating rate note, and for general corporate purposes. Talk is 6.375%-6.5% from initial price thoughts of mid 6s, with Credit Suisse, ...

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