Garfunkelux Holdco 3 S.A. closes offering of £1,622,080,000 (equivalent) Senior Secured Notes and secures £600m of contributions from its parent

Garfunkelux Holdco 2 S.A. (the “Company” and, together with its subsidiaries, the “Group”) has today completed the offering (the “Offering”) of senior secured notes by its subsidiary, Garfunkelux Holdco 3 S.A. (the “Issuer”), as follows:

  1. €600,000,000 floating rate senior secured notes due 2026, at an issue price of 98.500%, with a coupon of three-month EURIBOR (subject to 0% floor) plus 6.250% per annum, reset quarterly;
  2. €740,000,000 6.750% senior secured notes due 2025, at an issue price of 100.000%; and
  3. £400,000,000 7.750% senior secured notes due 2025, at an issue price of 100.000%.

Colin Storrar, Group CEO at Lowell, said: “We are delighted with the support we’ve received from the market. With this capital structure in place, we can really drive the business forward and grow. Alongside our continued strong performance, it puts us in a great place to take advantage of growth in the NPL market. We will continue our focus on high customer standards, ensuring fair customer outcomes and helping consumers return to financial health.

“As a group, we are delivering on the targets we set in our long-term growth strategy, Lowell23. Our leverage will be at 3.6x, within our target range. We continue to perform strongly, managing costs effectively and maintaining robust earnings. We have a new and improved platform for growth, and I am looking forward to the next phase of building Lowell.”

The Group intends to use the proceeds from the Offering, together with contributions from its parent in a total aggregate amount of £600 million:

  1. to fully redeem the Issuer’s £565 million 8.500% senior secured notes due 2022, €365 million 7.500% senior secured notes due 2022, €415 million floating rate senior secured notes due 2023, €530 million floating rate senior secured notes due 2023 and SEK 1,280,000,000 floating rate senior secured notes due 2023;
  2. to fully redeem the Company’s £230 million 11.000% senior notes due 2023;
  3. to partially repay drawings under the Group’s revolving credit facility;
  4. for general corporate purposes, which may include future debt portfolio purchases or repayment or redemption of indebtedness; and
  5. to pay fees and expenses in connection with the Offering and related transactions.