Encore Capital Group, Inc. Announces Pricing of Senior Secured Floating Rate Notes Offering
10 October 2023 - 7:15AM
Encore Capital Group, Inc. (Nasdaq: ECPG) (the
“
Company”) today announced the pricing of its
offering of €100.0 million aggregate principal amount of its senior
secured floating rate notes due 2028 (the “
notes”)
at an issue price of 99.01%, 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 issued as "additional notes" under the
Company's existing notes indenture dated December 21, 2020, and
will have the same terms as the Company's currently outstanding
senior secured floating rate notes due 2028. The Notes will bear
interest at a rate equal to the sum of (i) three-month EURIBOR
(subject to a 0% floor) plus (ii) 4.250% per annum, reset
quarterly. The Issuer will pay interest on the Notes quarterly in
arrears on January 15, April 15, July 15 and October 15 of
each year, commencing on January 15, 2024. The Notes will
mature on January 15, 2028. 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 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.
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
Encore Capital (NASDAQ:ECPG)
Historical Stock Chart
From Apr 2024 to May 2024
Encore Capital (NASDAQ:ECPG)
Historical Stock Chart
From May 2023 to May 2024