Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

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By Owen Sanderson
22 Oct 2020

Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

The £600m equity injection comes as part of a comprehensive refinancing that will see the company switch to an all-secured capital structure and redeem its heavily shorted 11% 2023 unsecured bonds, the high coupon of which has caused management pain for years.

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