Intrum (INTRUM) Investor Update summary

Recapitalization process overview

• Severe market deterioration in early 2023 led to a sharp stock price drop and bond discounts, with rating agencies downgrading to single C levels.

• Over €3.5 billion in debt maturities loomed through 2026, prompting the hiring of Houlihan Lokey and Milbank for advisory support.

• Two main bondholder groups emerged; after negotiations, a lock-up agreement was reached with the long-end group, covering the entire capital structure.

• 73% of bondholders and 97% of banks supported the recapitalization plan, with subsequent repayment of 2024 maturities at par.

• A pre-packaged Chapter 11 was filed in the US, receiving 100% RCF bank and 82% bondholder support, and was confirmed by the court despite minority opposition.

Swedish reorganization and next steps

• The Swedish reorganization is the final step, independent from Chapter 11, with a creditor vote expected in March and completion likely in Q2.

• Locked-up creditors are legally committed to support the plan; all creditors will have standing in the Swedish process.

• Delays are possible but limited to a few weeks, with agreements in place to pursue recapitalization through May or June if needed.

• If the Swedish court does not approve, alternatives will be considered, but the Chapter 11 outcome remains effective for much of the capital structure.

Financial impact and bondholder implications

• Legal and advisory costs are significant, in the tens of millions of euros, but are proportionate to the €5 billion debt being restructured.

• Deferred and accrued interest, as well as consent fees, will be settled in cash or in kind at closing, expected in Q2.

• Old bonds will be exchanged for new bonds, and bondholders will receive 10% of company shares, distributed proportionally.

• The recapitalization will result in a 10% debt write-down and further deleveraging through bond repurchases.