Arctic: Credit Daily - HY Markets, LR Health & Beauty, Seadrill, Odfjell Technology, NP3, TGS ++

Research evidence excerpt

Arctic: Credit Daily - HY Markets, LR Health & Beauty, Seadrill, Odfjell Technology, NP3, TGS ++

Credit Daily

11 May 2026 | 08:19

HY Markets, LR Health & Beauty, Seadrill, Odfjell Technology, NP3, TGS ++ Key figures & indices Arctic HY Index

HY Markets: Constructive risk sentiment

Risk sentiment remained constructive with global equities up +1.8% and new record highs for

both S&P 500 and Nasdaq, supported by solid macro data, strong Q1 earnings and continued AI

momentum. Primary activity remains high, with nine Nordic deals priced last week and generally

solid aftermarket performance. Secondary was firm: Xover tightened 7 bps to 278 bps, CDX HY

tightened 5 bps to 323 bps. Arctic’s Nordic HY index tightened 2 bps to 487 bps while NBP gained

0.09points (-3bps). The Nordic risk premium is at +209bps vs the Xover (LT average: 206bps)

while it screens cheaply agains the US HY markets: +182mbps vs the HYG (LT average: 125bps).

LR Health & Beauty Q1: Continued pressure on sales and earnings

LR generated revenues of EUR 61m in Q1, representing a 17% decline compared to the same

quarter last year. The company attributes the weaker sales to continued subdued consumer

sentiment across many European markets. Adjusted EBITDA came in at EUR 5m, down from EUR

8m in Q1’25 and below our estimate of EUR 7m. Reported EBITDA was EUR 3m (Q1’25: EUR 7m).

Cash flow was also below our expectations, with NIBD reaching EUR 155m, +6% versus ARCe.

LR ended the quarter with a cash balance of EUR 18m, up from EUR 8m at year-end 2025, driven

by EUR 10m in super senior bonds provided by certain bondholders to bridge liquidity needs during

the ongoing restructuring process. In terms of the restructuring timeline, the company expects key

milestones to be completed within H1’26.