Debt collector Intrum lines up refinancing deal with bondholders
Updates shares, adds year-to-date move and bonds in paragraphs 8-10 10
COPENHAGEN, June 20 (Reuters) -European credit management company Intrum INTRUM.ST has agreed key terms of a potential refinancing and recapitalisation transaction with a group of bondholders, it said on Thursday, sending its share price up.
The Swedish group appointed advisers in March to help improve its own debt structure.
"Intrum confirms that it has been in negotiations with a creditor group, primarily consisting of long-dated bondholders, with respect to the key terms of a potential refinancing and recapitalisation transaction," it said on Thursday.
"The negotiations have resulted in the company and certain noteholders agreeing a commercial term sheet in principle."
The terms include extending the maturity of the company's revolving credit facility as well as repaying all Intrum's debt maturing in 2024.
Financial debt due between 2025 and 2028 would be cut by 10% and restructured into one or more instruments with maturities from 2027 to 2030, in exchange for an "uplift" for creditors that included a 10% equity stake, the company said.
All terms remain subject to documentation and agreement with Intrum's revolving credit facility lenders, the company said, adding that it continued to explore other financing proposals.
Shares in the company, which were suspended temporarily earlier in the day, were up 22% at 0950 GMT, paring gains after rising as much as 36%.
The stock has still lost more than half of its value this year, hit by mounting investor concerns around the debt collector's own 58 billion crown ($5.55 billion) debt pile.
Prices on Intrum's euro-denominated bonds maturing in July rose by 2.25 cents to 98.75 cents on Thursday, while bonds maturing in August 2025 fell 1 cent to 76.00 cents, MarketAxess data showed.
($1 = 10.4585 Swedish crowns)
Reporting by Louise Rasmussen
Additional reporting by Anna Ringstrom and Greta Rosen Fondahn
Editing by Terje Solsvik and David Goodman
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