Encore Capital Offers $400M Senior Secured Notes

Encore Capital Group, Inc. (NASDAQ: ECPG) has announced its plan to offer $400.0 million aggregate principal amount of senior secured notes due 2029 in a private offering. These notes will be senior secured obligations of the company, fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the company. The interest rate and other terms of the notes will be determined at the pricing of the offering.

The company intends to use the proceeds from this offering to repay drawings under its revolving credit facility and to pay certain transaction fees and expenses incurred in connection with the offering of the notes. Additionally, the company currently plans to use borrowings under the global senior facility or other available sources of financing to redeem its £300.0 million senior secured notes due 2026 on or about November 15, 2024.

It's important to note that the offer and sale of the notes have not been, and will not be, registered under the Securities Act. Therefore, the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

As of the press release date, the company has not disclosed the interest rate and other terms of the notes, with the determination being left to the pricing of the offering. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $46.53. If you want to know more, read the company's complete 8-K report here.

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