Encore Capital Group, Inc. Announces Proposed Senior Secured Notes Offering

Rhea-AI Summary

Encore Capital Group (Nasdaq: ECPG) announced plans to offer $400 million in senior secured notes due 2031 through a private offering to qualified institutional buyers. The notes will be senior secured obligations of the company, backed by substantially all material subsidiaries and secured by company assets.

The proceeds will be used to repay drawings under the company's Global Senior Facility and cover transaction-related expenses. The offering will be made only to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.

Positive

• Potential strengthening of capital structure through $400 million notes offering
• Strong security backing with notes secured by substantially all company assets
• Strategic debt refinancing by repaying revolving credit facility

Negative

• Additional long-term debt commitment through 2031
• Increased interest expense likely from new notes issuance
• Limited to qualified institutional buyers, excluding retail investors

SAN DIEGO, Sept. 24, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced its intention to offer, subject to market and other conditions, $400.0 million aggregate principal amount of senior secured notes due 2031 (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 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 purpose of Encore Capital Group's (ECPG) new notes offering?

Encore Capital Group is offering $400 million in senior secured notes due 2031 to repay drawings under its Global Senior Facility and cover transaction expenses.

How are Encore Capital's (ECPG) new notes secured?

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

Who can participate in Encore Capital Group's (ECPG) notes offering?

The offering is limited to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.

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

The senior secured notes will mature in 2031.

What are the interest terms for Encore Capital's (ECPG) new notes?

The interest rate and other terms will be determined at the pricing of the offering.