(Finance) – S&P Global Ratings downgraded to “CCC” the rating of Enter, a Swedish credit management giant, due to the increased likelihood of a distressed exchange following its capital structure update. The negative outlook reflects the increased likelihood of a distressed exchange.
On June 21, Intrum provided an update regarding its capital structure and shared the potential terms of a market offering. According to the rating agency, the proposed terms indicate a greater likelihood of considering the transaction as a distressed exchange because the investors would not be adequately compensated for exchange under these terms.
The potential conditions for debt holders include as main features: full repayment of their bonds maturing in July 2024; all bonds maturing in 2025 and beyond will be transformed into senior debt, extended by two years, with an increase in coupon rates and a 10% conversion into equity; a new structure guaranteed by 400 million euros.
Last week too Fitch had downgraded its rating to “CCC”.