Encore Capital Group (Nasdaq:ECPG) priced an upsized private offering of $750 million 6.625% senior secured notes due 2032 at 100.00% of face value. The notes are guaranteed and secured by substantially all material subsidiaries and assets.
Proceeds, plus revolver drawings, will redeem $500 million 9.250% notes due 2029, redeem €200 million of 2028 floating-rate notes, and pay related costs. The transaction does not change 2026 financial guidance.
Loading...
Loading translation...
Positive
$750 million senior secured notes due 2032 priced at 6.625%
Offering upsized by $200 million from the initial $550 million plan
Proceeds earmarked to redeem $500 million 9.250% notes due 2029
Plan to redeem €200 million of 2028 senior secured floating-rate notes
Negative
6.625% senior secured notes create fixed interest obligations through 2032
Substantially all company and guarantor assets pledged as collateral for senior secured indebtedness
News Market Reaction – ECPG
-0.87%
-0.87%Session close to close
In the May 12 session, ECPG declined 0.87%, reflecting a mild negative market reaction.
This announcement details a $750.0 million senior secured notes offering at 6.625%, largely aimed at...
Analysis
This announcement details a $750.0 million senior secured notes offering at 6.625%, largely aimed at redeeming existing 9.250% 2029 notes and part of the euro floating-rate 2028 issue. It leaves 2026 guidance unchanged and continues Encore’s use of private Rule 144A and Regulation S placements. Investors may focus on future disclosures around total debt, interest costs, and how these refinancing steps interact with recent earnings strength and capital allocation priorities.
Key Figures
New notes offering size:$750.0 millionOriginal offering size:$550.0 millionCoupon rate:6.625%+5 more
8 metrics
New notes offering size$750.0 millionAggregate principal amount of 6.625% senior secured notes due 2032
Original offering size$550.0 millionInitial size before upsizing to $750.0 million
Coupon rate6.625%Interest rate on new senior secured notes due 2032
Issue price100.00%Issue price of new senior secured notes
Redemption of 2029 notes$500.0 millionOutstanding 9.250% senior secured notes due 2029 to be redeemed in full
Euro notes partial redemption€200.0 millionPortion of €415.0 million floating rate notes due 2028 to be redeemed
Euro notes outstanding€415.0 millionTotal outstanding senior secured floating rate notes due 2028
Legacy coupon9.250%Interest rate on senior secured notes due 2029 being redeemed
Proposed $400M senior secured notes to repay Global Senior Facility.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Past senior secured note offerings saw mixed single-day reactions, with an average move of -1.92%.
Recent Company History
Recent capital markets activity for Encore Capital has focused on senior secured note offerings. On Sep 24, 2025, the company priced an upsized $500 million senior secured notes deal at 6.625% due 2031, following an earlier proposed $400 million transaction the same day. Proceeds were allocated to repay drawings under its Global Senior Facility and cover expenses. Today’s larger $750 million senior secured notes pricing continues this pattern of refinancing and balance sheet-focused activity.
"announced the pricing of its offering of $750.0 million aggregate principal amount of 6.625% senior secured notes due 2032"
Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.
rule 144aregulatory
"in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933"
Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.
regulation sregulatory
"outside the United States to non-U.S. persons (within the meaning of Regulation S under the Securities Act)"
Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.
revolving credit facilityfinancial
"use the proceeds from this offering, together with drawings under its revolving credit facility, to (a) redeem"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
floating rate notesfinancial
"redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028"
Floating rate notes are debt securities that pay interest that adjusts periodically based on a short-term interest benchmark (for example, LIBOR or SOFR), so the cash interest you receive goes up or down with market rates. For investors they act like an adjustable-rate loan: they help protect income when overall interest rates rise and generally lose less value than fixed-rate bonds when rates move, making them useful for managing interest-rate risk.
private offering memorandumregulatory
"Any offer of the securities will be made only by means of a private offering memorandum."
A private offering memorandum is a detailed disclosure document used when securities are sold privately rather than on public markets; it lays out what the investment is, how it works, the fees and terms, the company’s financials, and the main risks. Think of it as a full information packet or brochure you get before buying a complex product—investors use it to compare opportunities, spot red flags, understand legal rights and limits on resale, and decide whether the potential reward justifies the risk.
SAN DIEGO, May 11, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced the pricing of its offering of $750.0 million aggregate principal amount of 6.625% senior secured notes due 2032 (the “notes”), which was upsized to $750.0 million from $550.0 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 June 1 and December 1 of each year, beginning on December 1, 2026. The notes will mature on June 1, 2032 unless earlier repurchased or redeemed by the Company.
The Company intends to use the proceeds from this offering, together with drawings under its revolving credit facility, to (a) redeem its outstanding $500.0 million of 9.250% senior secured notes due 2029 in full, including payment of the premium due as part of the redemption price and estimated accrued interest payable on the redemption date, (b) redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering. The offering and the use of proceeds therefrom does not change the guidance for the fiscal year ended December 31, 2026 that the Company provided on May 6, 2026.
Depending on the capital markets, the Company continuously considers additional financings, including offerings of additional senior secured notes in different currencies and with fixed or floating interest rates, to fund its operations and to refinance existing debt obligations.
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 bruce.thomas@encorecapital.com
FAQ
What did Encore Capital Group (Nasdaq:ECPG) announce about its 2032 senior secured notes on May 11, 2026?
Encore Capital Group announced pricing of $750 million 6.625% senior secured notes due 2032. According to Encore Capital Group, the notes were upsized from $550 million, priced at 100.00%, and sold in a private Rule 144A/Reg S offering to qualified investors.
How will Encore Capital Group use the $750 million ECPG senior secured notes proceeds?
Encore Capital Group plans to use proceeds mainly for debt redemptions and fees. According to Encore Capital Group, funds plus revolver drawings will redeem $500 million 9.250% notes due 2029, redeem €200 million of 2028 floating-rate notes, and cover premiums, interest, fees and discounts.
What are the interest rate and maturity of Encore Capital Group's new ECPG notes?
The new Encore Capital Group notes carry a 6.625% annual interest rate and mature June 1, 2032. According to Encore Capital Group, interest is payable semi-annually on June 1 and December 1, beginning December 1, 2026, unless earlier redeemed or repurchased.
Does the May 2026 ECPG senior secured notes offering change Encore Capital Group's 2026 guidance?
The May 2026 senior secured notes offering does not change Encore Capital Group's 2026 guidance. According to Encore Capital Group, the offering and intended use of proceeds leave unchanged the fiscal year 2026 guidance previously provided on May 6, 2026.
Are Encore Capital Group's 6.625% senior secured notes registered under the Securities Act of 1933?
The new 6.625% senior secured notes are not registered under the Securities Act of 1933. According to Encore Capital Group, the notes may not be offered or sold in the United States without registration or an applicable exemption, and are offered via private memorandum.
Who guarantees and secures Encore Capital Group's new 2032 senior secured notes (ECPG)?
The 2032 notes are senior secured obligations guaranteed by material subsidiaries and secured by substantial assets. According to Encore Capital Group, the notes and other senior secured indebtedness are secured by substantially all assets of the company and the guarantors on a senior secured basis.
