Lowell Strikes Bond Extension Deal With 48% of Holders (1)

Debt collector Lowell has agreed with almost half of its bondholders to refinance its approximate £1.6 billion ($2 billion) equivalent of looming bond maturities as the firm grapples with a squeeze on profitability.

Under the proposed plan, most of the bonds maturing in 2025 and 2026 would be extended by three years, with part of the notes repaid in cash and part reinstated as payment-in-kind debt, according to a statement from Lowell.

Like many debt collectors, Lowell has been struggling following the rise in funding costs and increased competition for credit portfolios. The company has undertaken a number of asset ...