Lowell - comment

Lowell announced the official completion of its restructuring program today, as well as the buy-back of Wolf-1 and a new Wolf-4 transaction for net proceeds of £142m - required to maintain liquidity. The restructuring was completed largely as communicated earlier this year. Only the RCF has been split into a £50m new RCF with the £355m remainder converted into a term loan. Also, the New HoldCo PIKs are now at £292m instead of £250m - largely due to the delay of the transaction. We remain sceptical that a smaller company can carry the undiminished interest burden that a bigger company could not in the first place.