Encore Capital Group, Inc. Announces Pricing of Upsized Senior Secured Notes Offering
May 13 2024 - 5:45PM
Encore Capital Group, Inc. (Nasdaq: ECPG) (the
“
Company”) today announced the pricing of its
offering of $500.0 million aggregate principal amount of 8.500%
senior secured notes due 2030 (the “
notes”), which
was upsized by $100.0 million from $400.0 million, at an issue
price of 100.000% in a private offering to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933, as
amended (the “
Securities Act”) and outside the
United States to non-U.S. persons (within the meaning of Regulation
S under the Securities Act).
The notes will be senior secured obligations of
the Company, and will be fully and unconditionally guaranteed on a
senior secured basis by substantially all material subsidiaries of
the Company. The obligations of the Company and the guarantors will
be secured, together with the Company’s other senior secured
indebtedness, by substantially all of the assets of the Company and
the guarantors. The notes will accrue interest at a rate of 8.500%
per annum, payable semi-annually in arrears on May 15 and
November 15 of each year, beginning on November 15,
2024. The notes will mature on May 15, 2030 unless earlier
repurchased or redeemed by the Company.
The Company intends to use the proceeds from
this offering to repay drawings under its revolving credit facility
(the "Global Senior Facility"), to pay certain transaction fees and
expenses incurred in connection with the offering of the notes and
for general corporate purposes. The Company currently intends to
use borrowings under the Global Senior Facility or other available
sources of financing to redeem its €350.0 million senior secured
notes due 2025 on or about October 15, 2024.
The offer and sale of the notes have not been,
and will not be, registered under the Securities Act, and the notes
may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements. This
press release does not constitute an offer to sell, or the
solicitation of an offer to buy, the notes nor will there be any
sale of the notes in any state or other jurisdiction in which such
offer, sale or solicitation would be unlawful. Any offer of the
securities will be made only by means of a private offering
memorandum.
Forward-Looking StatementsThis
press release includes forward-looking statements, including
statements regarding the completion, timing and size of the
proposed offering, the intended use of the proceeds and the terms
of the notes being offered. Forward-looking statements represent
Encore’s current expectations regarding future events and are
subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those implied by the
forward-looking statements. Among those risks and uncertainties are
market conditions, including market interest rates, the trading
price and volatility of Encore’s common stock and risks relating to
Encore’s business, including those described in periodic reports
that Encore files from time to time with the U.S. Securities and
Exchange Commission. Encore may not consummate the proposed
offering described in this press release and, if the proposed
offering is consummated, cannot provide any assurances regarding
the final terms of the notes or its ability to effectively apply
the net proceeds as described above. The forward-looking statements
included in this press release speak only as of the date of this
press release, and Encore does not undertake to update the
statements included in this press release for subsequent
developments, except as may be required by law.
Contact Information
Bruce Thomas, Investor Relations(858)
309-6442bruce.thomas@encorecapital.com
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