Encore Capital Group, Inc. Announces Pricing of Upsized Senior Secured Notes Offering

Rhea-AI Summary

Encore Capital Group (Nasdaq: ECPG) has announced the pricing of its upsized $500 million senior secured notes offering, increased from the initially planned $400 million. The notes, due 2031, are priced at 100.00% with a 6.625% interest rate payable semi-annually starting April 15, 2026.

The notes will be senior secured obligations, guaranteed by the company's material subsidiaries and secured by substantially all assets. The proceeds will be used to repay drawings under Encore's Global Senior Facility and cover transaction-related expenses. The offering is limited to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

Positive

• Successfully upsized offering by $100 million to $500 million total, indicating strong demand
• Notes are fully secured by company assets, providing strong protection for investors
• Proceeds will be used to repay revolving credit facility, improving debt structure

Negative

• Relatively high interest rate of 6.625% represents significant interest expense
• Long-term debt commitment through 2031 could impact financial flexibility

SAN DIEGO, Sept. 24, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced the pricing of its offering of $500.0 million aggregate principal amount of 6.625% senior secured notes due 2031 (the “notes”), which was upsized by $100.0 million from $400.0 million, at an issue price of 100.00% 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 6.625% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on April 15, 2026. The notes will mature on April 15, 2031 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") 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 Statements
This 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) 309-6442
bruce.thomas@encorecapital.com

FAQ

What is the size and interest rate of Encore Capital Group's (ECPG) new notes offering?

Encore Capital Group has priced a $500 million senior secured notes offering with an interest rate of 6.625%, upsized from the initial $400 million plan.

When will Encore Capital Group's (ECPG) new notes mature?

The senior secured notes will mature on April 15, 2031, unless earlier repurchased or redeemed by the company.

How will Encore Capital Group use the proceeds from its 2025 notes offering?

The proceeds will be used to repay drawings under its Global Senior Facility and to pay transaction-related fees and expenses.

What security backing does Encore Capital Group's new notes offering have?

The notes are senior secured obligations, fully guaranteed by material subsidiaries and secured by substantially all assets of the company and guarantors.

When will interest payments be made on Encore Capital Group's 2031 notes?

Interest will be paid semi-annually on April 15 and October 15 of each year, beginning April 15, 2026.