Lowell - comment

Better than we thought. Lowell has dropped Nordic assets into a new SPV, financed by a €200m ABS Receivables Facility, which has been backstopped by Arini, and funded to the tune of €40m already. SSN holders are receiving an offer to participate pro rata and elevate approx. 35% of their holdings into a BSV SPV (to be created and filled with a maximum of assets, then levered through a “cashless” exchange of participating SSNs) on substantially similar terms as the new Receivables Facility. However, against our expectations, the "Cashless Notes” should be at most about €270m and to be purchased with SSNs, subject to a 20% haircut. So the total amount elevating is €130m smaller than we thought, but due to the new ABS Facilities providing fresh cash, there is also more layering.