Encore Capital Group (Nasdaq:ECPG) priced an upsized offering of €325.0 million senior secured floating rate notes due 2033, increasing from €300.0 million. The notes pay three-month EURIBOR (0% floor) + 3.250%, reset and paid quarterly, and are secured by substantially all company and guarantor assets.
Encore plans to use proceeds to redeem €215.0 million of its €415.0 million 2028 floating notes, repay revolving credit facility drawings, and cover fees. Together with a previously priced $750.0 million 6.625% senior secured notes due 2032, the company expects to fully redeem its €415.0 million 2028 notes and $500.0 million 2029 notes, while keeping 2026 guidance unchanged.
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AI-generated analysis. Not financial advice.
Positive
Upsized €325.0 million senior secured floating rate notes from €300.0 million
Coupon set at three-month EURIBOR (0% floor) plus 3.250% to 2033
Plan to redeem €215.0 million of €415.0 million 2028 floating notes from proceeds
Previously priced $750.0 million 6.625% senior secured notes due 2032
Full redemption of €415.0 million 2028 notes and $500.0 million 2029 notes expected
Company states 2026 financial guidance remains unchanged after these transactions
Negative
New €325.0 million senior secured notes increase total secured indebtedness
Offerings proceeds partly used for fees, expenses and purchasers’ discounts
News Market Reaction – ECPG
+3.43%
1 alert
+3.43%News Effect
On the day this news was published, ECPG gained 3.43%, reflecting a moderate positive market reaction.
New euro notes size:€325.0 millionOriginal euro notes size:€300.0 millionFloating coupon spread:3.250%+5 more
8 metrics
New euro notes size€325.0 millionSenior secured floating rate notes due 2033
Original euro notes size€300.0 millionInitial planned size before upsizing to €325.0M
Floating coupon spread3.250%Three-month EURIBOR plus 3.250%, reset quarterly
Redemption of 2028 notes€215.0 millionPortion of €415.0M 2028 floating-rate notes to be redeemed
Outstanding 2028 notes€415.0 millionSenior secured floating rate notes due 2028
2032 notes size$750.0 million6.625% senior secured notes due 2032
2029 notes redemption$500.0 million9.250% senior secured notes due 2029 to be redeemed in full
Additional 2028 euro redemption€200.0 millionFurther redemption of 2028 euro notes using 2032 Notes proceeds
Market Reality Check
Price:$82.47Vol:Volume 339,430 is slightl...
normal vol
$82.47Last Close
VolumeVolume 339,430 is slightly below the 20-day average of 350,326, indicating typical trading interest into this offering news.normal
TechnicalShares at $79.02 are trading above the 200-day MA of $55.58, despite the -3.17% move on the day.
Peers on Argus
ECPG fell 3.17% while key peers were mixed (ATLC +0.51%, LX +0.98%, EZPW -2.22%,...
ECPG fell 3.17% while key peers were mixed (ATLC +0.51%, LX +0.98%, EZPW -2.22%, WRLD +1.63%, OPFI -3.17%), pointing to a stock-specific reaction to the financing news rather than a broad Credit Services move.
Proposed $400M 2031 notes to repay Global Senior Facility and expenses.
Pattern Detected
Recent debt offering announcements often saw modest share declines, even when focused on refinancing and balance sheet management.
Recent Company History
Over the past year, Encore has repeatedly tapped private debt markets, including several upsized senior secured note offerings on Sep 24, 2025 and multiple deals in May 2026. These transactions were generally aimed at refinancing existing notes or repaying facilities. Historically, such “offering” headlines produced small negative moves (average -1.49%), suggesting investors often react cautiously to new leverage or capital structure changes, even when proceeds are earmarked for refinancing.
Historical Comparison
-1.5% avg move · In the past 12 months, ECPG announced 5 debt offerings with an average move of -1.49%. Today’s -3.17...
offering
-1.5%
Average Historical Moveoffering
In the past 12 months, ECPG announced 5 debt offerings with an average move of -1.49%. Today’s -3.17% reaction to another upsized refinancing skewed somewhat more negative than prior offering headlines.
Recent offering-tag events show a progression of upsized senior secured note deals used to refinance earlier maturities and repay credit facilities, continuing Encore’s balance sheet reshaping.
Market Pulse Summary
This announcement details an upsized €325.0 million senior secured floating rate note issue due 2033...
Analysis
This announcement details an upsized €325.0 million senior secured floating rate note issue due 2033, alongside previously priced $750.0 million 2032 notes, to redeem 2028 euro notes and 2029 dollar notes and repay revolver borrowings. Historically, “offering” news for Encore has produced small average moves of -1.49%. Investors may focus on the mix of fixed versus floating debt, total refinancing progress, and adherence to existing 2026 guidance when assessing future updates.
"pricing of its offering of €325.0 million aggregate principal amount of senior secured floating rate notes"
Debt securities that act like an adjustable-rate loan with a first-claim on a borrower's assets: they rank high in repayment priority (senior), are backed by specific collateral (secured), and pay interest that moves up or down with a market benchmark (floating rate). For investors this matters because these notes generally carry lower default risk than unsecured debt and provide interest that tracks market rates, so they offer greater repayment protection but variable income.
euriborfinancial
"with a coupon of three-month EURIBOR (subject to a 0% floor) plus 3.250%"
Euribor is the benchmark interest rate at which banks in the eurozone lend short-term money to one another and is published for several maturities (overnight to one year). Investors watch it because it forms the baseline for many loans, mortgages, bonds and derivatives—like the temperature reading that helps predict how hot borrowing costs and returns will be across the market.
rule 144aregulatory
"in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act"
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
"repay drawings under its revolving credit facility, and (c) pay estimated fees"
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.
initial purchasers’ discountsfinancial
"pay estimated fees, expenses and the initial purchasers’ discounts for the offering"
The initial purchasers’ discounts are the amount by which the group that buys a new block of securities from an issuer pays less than the price at which those securities are later sold to the public. Think of it like a retailer buying goods at a wholesale markdown to cover their cost and profit before reselling; for investors this discount shows how much of the offering price is taken as fees and risk premium, affects how much money the issuer actually raises, and can influence short-term trading pressure on the stock or bond.
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.
senior secured notesfinancial
"an offering of $750.0 million 6.625% senior secured notes due 2032 (the "2032 Notes")"
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.
AI-generated analysis. Not financial advice.
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SAN DIEGO, May 13, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced the pricing of its offering of €325.0 million aggregate principal amount of senior secured floating rate notes due 2033 (the “notes”) with a coupon of three-month EURIBOR (subject to a 0% floor) plus 3.250%, which was upsized from €300.0 million, 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 equal to the sum of (i) three-month EURIBOR (subject to a 0% floor) plus (ii) 3.250% per annum, reset quarterly, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, beginning on July 15, 2026. The notes will mature on July 15, 2033, unless earlier repurchased or redeemed by the Company.
The Company intends to use the proceeds from this offering to (a) redeem €215.0 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, (b) repay drawings under its revolving credit facility, and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
On May 11, 2026, the Company launched and priced an offering of $750.0 million6.625% senior secured notes due 2032 (the "2032 Notes"), which are expected to be issued on May 22, 2026. The Company intends to use the proceeds from the offering of the 2032 Notes, 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.
Following the completion of this offering and the offering of the 2032 Notes, and the use of proceeds therefrom, the Company's €415.0 million of outstanding senior secured floating rate notes due 2028 will be redeemed in full, and there will be a net repayment of drawings under its revolving credit facility.
The offering, the offering of the 2032 Notes 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.
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 are the key terms of Encore Capital’s (NASDAQ:ECPG) new 2033 euro notes priced on May 13, 2026?
Encore Capital priced €325.0 million of senior secured floating rate notes due 2033. According to the company, the notes pay three-month EURIBOR (with a 0% floor) plus 3.250%, reset quarterly and payable on January 15, April 15, July 15 and October 15 each year.
How will Encore Capital (ECPG) use proceeds from the €325 million 2033 notes offering?
Encore Capital plans to use proceeds to redeem €215.0 million of its €415.0 million 2028 floating notes. According to the company, remaining funds will repay revolving credit facility drawings and cover estimated fees, expenses and initial purchasers’ discounts related to the offering.
How do Encore Capital’s new 2033 euro notes relate to its $750 million 2032 notes (ECPG)?
Encore Capital recently launched and priced $750.0 million 6.625% senior secured notes due 2032. According to the company, proceeds from the 2032 notes and the 2033 euro notes will fund redemptions of existing 2028 euro notes and $500.0 million 2029 senior secured notes.
What existing Encore Capital (ECPG) debt will be redeemed using the 2032 and 2033 notes proceeds?
Encore Capital expects to fully redeem its €415.0 million senior secured floating rate notes due 2028. According to the company, proceeds will also redeem in full $500.0 million of 9.250% senior secured notes due 2029 and pay related premiums and accrued interest.
Does Encore Capital’s May 2026 notes financing affect its 2026 financial guidance (ECPG)?
Encore Capital states that these offerings and related use of proceeds do not change its 2026 guidance. According to the company, guidance for the fiscal year ending December 31, 2026 remains the same as provided on May 6, 2026.
When will interest be paid on Encore Capital’s new 2033 senior secured euro notes (ECPG)?
Interest on the 2033 notes will be paid quarterly in arrears. According to Encore Capital, payments fall on January 15, April 15, July 15 and October 15 of each year, beginning on July 15, 2026, using a three-month EURIBOR-based floating coupon.
Will Encore Capital’s new notes offerings be registered under the Securities Act (ECPG)?
The new notes offerings are not registered under the Securities Act and will not be publicly offered in the United States. According to the company, they are being sold privately to qualified institutional buyers and non-U.S. persons under Rule 144A and Regulation S.
