Encore Capital Group (Nasdaq:ECPG) plans a private offering of €300 million senior secured floating rate notes due 2033 to qualified investors. The notes will be guaranteed and secured by substantially all material subsidiaries and assets.
Proceeds will help redeem existing 2028 notes, repay revolving credit facility drawings, and cover fees, alongside a separate $750 million 6.625% senior secured notes due 2032 issue used to refinance 2029 and additional 2028 notes.
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Positive
Plans €300 million senior secured floating rate notes due 2033
$750 million 6.625% senior secured notes due 2032 already launched and priced
Proceeds earmarked to redeem $500 million 9.250% notes due 2029 in full
Total €415 million senior secured floating rate notes due 2028 to be fully redeemed
Net repayment of drawings under revolving credit facility expected after transactions
Negative
None.
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 outlines a significant refinancing, combining a proposed €300.0M senior secured fl...
Analysis
This announcement outlines a significant refinancing, combining a proposed €300.0M senior secured floating rate issuance due 2033 with previously priced $750.0M6.625% notes due 2032. Proceeds are earmarked to redeem $500.0M of 9.250% 2029 notes, fully retire €415.0M of 2028 euro notes, and reduce revolving credit facility drawings. Compared with prior offerings that averaged a -1.92% one-day move, investors may watch execution, final pricing terms, and resulting leverage and interest-cost profiles.
Key Figures
New euro notes size:€300.0 millionRedemption amount (euro notes):€215.0 millionOutstanding euro notes 2028:€415.0 million+5 more
8 metrics
New euro notes size€300.0 millionProposed senior secured floating rate notes due 2033
Redemption amount (euro notes)€215.0 millionPortion of €415.0M senior secured floating rate notes due 2028 to be redeemed
Outstanding euro notes 2028€415.0 millionCurrent senior secured floating rate notes due 2028 before redemptions
New dollar notes size$750.0 million6.625% senior secured notes due 2032 (2032 Notes)
Redeemed 2029 notes$500.0 million9.250% senior secured notes due 2029 to be redeemed in full
Additional euro redemption€200.0 millionAdditional portion of €415.0M 2028 euro notes to be redeemed using 2032 Notes proceeds
Interest rate 2032 Notes6.625%Coupon on $750.0M senior secured notes due 2032
Interest rate 2029 notes9.250%Coupon on $500.0M senior secured notes due 2029 being redeemed
Proposed $400M senior secured notes to repay Global Senior Facility borrowings.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Prior senior secured note offerings around refinancing or repayment saw modest single-day moves, with an average reaction of about -1.92%, generally aligned with the financing headline.
Recent Company History
Recent capital markets activity for Encore shows recurring use of senior secured notes. On Sep 24, 2025, the company upsized a senior secured notes deal to $500M at 6.625%, following an earlier proposal for $400M. Those offerings were aimed at repaying drawings under its Global Senior Facility and handling transaction costs. Both events produced moderate price reactions, suggesting the market has typically absorbed Encore’s secured note financings without extreme volatility.
"€300.0 million aggregate principal amount of senior secured floating rate notes due 2033"
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.
rule 144aregulatory
"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
"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"
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
"offering of $750.0 million 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.
SAN DIEGO, May 12, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced its intention to offer, subject to market and other conditions, €300.0 million aggregate principal amount of senior secured floating rate notes due 2033 (the “notes”) 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 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 (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 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 is Encore Capital Group’s (Nasdaq:ECPG) proposed €300 million senior secured notes offering in May 2026?
Encore Capital Group plans to offer €300 million of senior secured floating rate notes due 2033 in a private transaction. According to the company, these notes will be guaranteed by substantially all material subsidiaries and secured by substantially all of the company’s and guarantors’ assets.
How will Encore Capital Group use proceeds from the €300 million senior secured notes (ECPG)?
Encore Capital Group plans to use proceeds to redeem €215 million of its €415 million senior secured floating rate notes due 2028. According to the company, funds will also repay revolving credit facility drawings and cover fees, expenses, and initial purchasers’ discounts.
What are the key terms of Encore Capital Group’s $750 million 6.625% senior secured notes due 2032?
Encore Capital Group has launched and priced $750 million of 6.625% senior secured notes due 2032, expected to be issued May 22, 2026. According to the company, proceeds will primarily redeem $500 million of 9.250% senior secured notes due 2029 and part of the 2028 euro notes.
How will Encore Capital’s 2026 debt transactions affect its 2028 senior secured floating rate notes?
Encore Capital Group expects its entire €415 million of senior secured floating rate notes due 2028 to be redeemed in full after these offerings. According to the company, €215 million will be redeemed using the new 2033 notes and €200 million using proceeds from the 2032 notes.
What impact will Encore Capital’s new notes have on its revolving credit facility (ECPG)?
Encore Capital Group intends to use part of the new notes’ proceeds to repay drawings under its revolving credit facility. According to the company, following both offerings and redemptions, there will be a net repayment of revolving credit facility drawings.
Are Encore Capital Group’s 2033 senior secured notes registered under the Securities Act?
Encore Capital Group’s proposed 2033 senior secured notes will not be registered under the Securities Act. According to the company, they may be offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S in a private offering.
Can retail investors in the United States buy Encore Capital’s new 2033 senior secured notes?
Retail investors in the United States generally cannot buy these notes directly, as the issue is unregistered and targeted to qualified institutional buyers. According to the company, any offer will be made only through a private offering memorandum under Rule 144A and Regulation S.
