(Bloomberg) – Lowell, a lender of British debt collector, is seeking better terms as part of the agreement that will allow the company to extend its maturity and obtain new cash from its bondholders.
Creditors who are exposed to revolving credit institutions want to improve certain conditions set by the company, according to people familiar with the matter. Some say they include banks, as well as funds from Alino Capital and Värde partners.
Discussions are underway between creditors, companies and bondholders who support the transaction. Lowell said in a Jan. 24 statement that the company needs to support revolving credit lenders to implement consensus transactions. The debt collector is supported by private equity firm Permira.
Last December, Lowell agreed with some bondholders to extend the maturity of their notes by three years, while paying some of them back cash and restoring the other part to physical debt. The company has been backed by investors including BlackRock Inc. and Invesco Ltd.
In January, it won the support of Arini Capital Management, its largest creditor, by adding 250 million euros in new funding to the proposal. New cash will be provided by bondholders.
As part of the transaction, the revolving credit line will see its maturity extending to August 2028. While collateral packages and covenants will be improved, the deal will retain the same pricing and other terms, according to Lowell’s speech.
Lowell held months of talks with bondholders on how to resolve its approaching deadline with the help of PJT Partners Inc. and Goldman Sachs Group Inc.
A spokesperson for Lowell and Alinor Capital declined to comment. Värde Partners did not immediately respond to a request for comment.
The challenging background of debt collectors has also prompted other over-leveraged companies to overhaul their capital structure. Sweden-based Intrum AB also underwent a debt restructuring, while Arrow Global took over the Iqera Group.
– Assisted with Libby Cherry.
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