Intrum Justitia today successfully issued EUR 3 billion (equivalent) of senior unsecured bonds. The proceeds will be used to repay substantially all of the outstanding debt of Lindorff and to repay the existing revolving credit facility of Intrum Justitia at completion of the merger of the two companies, as well as to pay related fees and expenses.
The transaction was very well received by investors and substantially oversubscribed. The average yield was approximately 2.85% for an average maturity of about 5.6 years.
“The completion of this bond issue and the favorable terms is evidence of the strong business and credit profile of the combined company. Through the bond issue and our new revolving credit facility of EUR 1.1 billion, the combined company now has a very strong financial flexibility for the coming years, at an industry leading cost of capital,” says Mikael Ericson, President and CEO of Intrum Justitia AB.
The bonds were issued in the following tranches:
– SEK 3,000 million floating rate notes with a 5-year maturity were issued at STIBOR3m + 275 percentage points
– EUR 300 million floating rate notes with a 5-year maturity were issued at EURIBOR3m + 262.5 percentage points
– EUR 1,500 million fixed rate notes with a 5-year maturity were issued with a coupon of 2.75%
– EUR 900 million fixed rate notes with a 7-year maturity were issued with a coupon of 3.125%
Application will be made to the Irish Stock Exchange for the Notes to be admitted to the Official List and to trading on the Global Exchange Market.
Lindorff has been in the business of helping people manage credit for over 100 years. Its headquarters are located in Oslo, Norway, the same city as Eynar Lindorff founded the company back in 1898. Today it has 4,400 people in 12 countries across Europe helping customers back to a life of sustainable spending. Nordic Capital Fund VIII is a majority shareholder in the company which offers services within debt collection and debt purchase as well as payment and invoicing services. In 2016 Lindorff generated EUR 647 million in net revenue (2015 EUR 534 million). For further information, please visit www.lindorff.com
About Intrum Justitia:
Intrum Justitia offers comprehensive services, including purchase of receivables, designed to measurably improve clients’ cash flows and long-term profitability. Founded in 1923, Intrum Justitia has some 4,200 employees in 21 markets. Consolidated revenues amounted to SEK 6.1 billion in 2016. Intrum Justitia AB is listed on Nasdaq Stockholm since 2002. For further information, please visit www.intrum.com
About Nordic Capital:
Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. The Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VIII with EUR 3.5 billion in committed capital, principally provided by international institutional investors such as pension funds. The Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory entities in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital please see www.nordiccapital.com
This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Notes will be distributed in a private offering exempt from the registration requirements of the Securities Act and will accordingly be distributed only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and certain persons outside the United States in compliance with Regulation S under the Securities Act. No indebtedness incurred in connection with any other financing transactions will be registered under the Securities Act.
This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities
Forward Looking Statements
This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding Intrum Justitia, Lindorff or their respective affiliates’ intentions, beliefs or current expectations concerning, among other things, Intrum Justitia’s, Lindorff’s or their respective affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which they operate. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.
Readers are cautioned that forward looking statements are not guarantees of future performance and that Intrum Justitia, Lindorff or their respective affiliates’ actual results of operations, financial condition and liquidity, and the development of the industry in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if Intrum Justitia, Lindorff or their respective affiliates’ results of operations, financial condition and liquidity, and the development of the industry in which Intrum Justitia and Lindorff operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.