Intrum - comment

Management confirm that the company is in talks to sell parts of its back-book. We assume Lowell’s past transactions as a blueprint. The transaction should temporarily raise Cash EBITDA and pay down gross leverage, but on our calculations leave behind a higher LTV for the remaining notes. The company has significant maturities in 2024 and 2025 and is looking to avoid coming to market next year. To reiterate, we are not fans of Cash EBITDA but recognise that a large contingent of the market is quite enamoured with the metric.