Permira digs deep to recap Lowell as NPL expectations build

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By Owen Sanderson
21 Oct 2020

Permira and partners have injected £600m of equity into their debt collector portfolio company Lowell as part of a £2.2bn recapitalisation and refinancing effort for the troubled company, which saw its bonds heavily shorted and was widely expected to restructure its liabilities this year. The contribution is the largest equity injection from a sponsor in EMEA since the coronavirus pandemic began, and reflects what Lowell's management sees as a historic opportunity to buy NPL portfolios in the months ahead.

The deal, announced Wednesday morning, will refinance the company’s whole bond capital structure, repaying its £565m 8.5% 2022s, its €365m 7.5% 2022s, €415m and €530m FRN 2023s, and its Skr1.28bn FRN 2023s. 

Those bonds are all in secured format, but Lowell is also intending to get rid of a ...

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