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

Encore Capital Group (Nasdaq:ECPG) plans a private offering of $550 million senior secured notes due 2032 to qualified institutional buyers and certain non-U.S. investors.

Rhea-AI Summary

Encore Capital Group (Nasdaq:ECPG) plans a private offering of $550 million senior secured notes due 2032 to qualified institutional buyers and certain non-U.S. investors.

The notes will be guaranteed by substantially all material subsidiaries and secured by substantially all assets.

Proceeds, plus revolving credit drawings, are intended to redeem $500 million 9.250% senior secured notes due 2029 in full, redeem €200 million of €415 million senior secured floating rate notes due 2028, and pay related fees and expenses.

Positive

• Proposes $550 million senior secured notes due 2032
• Plans full redemption of $500 million 9.250% notes due 2029
• Plans partial redemption of €200 million of €415 million 2028 notes

Negative

• New notes will be secured by substantially all company and guarantor assets
• Offering is unregistered and limited to qualified institutional and non-U.S. investors

Argus May 11 session

-1.85% close to close Open Argus

Details

News Market Reaction – ECPG

On May 11, the day this news came out, ECPG closed 1.85% below the previous close.

Data tracked by StockTitan Argus for the May 11 session.

Key Figures

Proposed notes size: $550.0 million Redemption amount: $500.0 million Note coupon: 9.250% +5 more

Proposed notes size

$550.0 million

Aggregate principal amount of senior secured notes due 2032

Redemption amount

$500.0 million

Outstanding 9.250% senior secured notes due 2029 to be redeemed

Note coupon

9.250%

Interest rate on senior secured notes due 2029 being redeemed

Euro notes partial redemption

€200.0 million

Portion of €415.0M floating rate notes due 2028 to be redeemed

Euro notes outstanding

€415.0 million

Outstanding senior secured floating rate notes due 2028 before partial redemption

New notes maturity

2032

Maturity year of proposed senior secured notes

Existing notes maturity

2029

Maturity of 9.250% senior secured notes to be redeemed

Euro notes maturity

2028

Maturity of senior secured floating rate euro notes

Previous Offering Reports

2 past events · Latest: Sep 24

Same Type 2 events

1. Sep 24

   Debt offering pricing

   24h Move

   +0.8%

   Pricing of upsized $500M senior secured notes due 2031 at fixed rate.

2. Sep 24

   Debt offering proposal

   24h Move

   -4.7%

   Announcement of proposed $400M senior secured notes to refinance debt facility.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured notes, rule 144a, regulation s, revolving credit facility, +2 more

6 terms

senior secured notes financial

"announced its intention to offer ... 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 144a regulatory

"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 s regulatory

"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 facility financial

"use the proceeds from this offering, together with 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.

floating rate notes financial

"€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 memorandum regulatory

"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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN DIEGO, May 11, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced its intention to offer, subject to market and other conditions, $550.0 million aggregate principal amount of senior secured notes due 2032 (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, 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.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Encore Capital Group (NASDAQ:ECPG) announce on May 11, 2026 about new notes?

Encore Capital Group announced a proposed private offering of $550 million senior secured notes due 2032. According to Encore Capital Group, the notes will be offered to qualified institutional buyers and certain non-U.S. persons under Rule 144A and Regulation S.

How will Encore Capital Group (ECPG) use proceeds from its 2032 senior secured notes?

Encore Capital Group plans to use proceeds mainly for debt redemptions and related costs. According to Encore Capital Group, funds plus revolver drawings will redeem $500 million 9.250% notes due 2029, redeem €200 million of €415 million 2028 notes, and pay fees and discounts.

Which existing debts will Encore Capital Group (ECPG) redeem with the new notes?

Encore Capital Group intends to redeem two tranches of existing senior secured debt. According to Encore Capital Group, it will fully redeem $500 million of 9.250% senior secured notes due 2029 and redeem €200 million of its €415 million senior secured floating rate notes due 2028.

Who is eligible to buy Encore Capital Group's proposed 2032 senior secured notes (ECPG)?

The notes are targeted to qualified institutional buyers and certain non-U.S. investors. According to Encore Capital Group, the offering relies on Rule 144A and Regulation S and will not be registered under the Securities Act, limiting U.S. resale without registration or exemption.

Are Encore Capital Group's new senior secured notes due 2032 guaranteed and secured?

Yes, the notes will be senior secured obligations guaranteed by key subsidiaries. According to Encore Capital Group, substantially all material subsidiaries will fully and unconditionally guarantee the notes, which will be secured by substantially all assets of the company and guarantors alongside other senior secured debt.

Has Encore Capital Group disclosed the interest rate for its 2032 notes offering (ECPG)?

No, the interest rate and final terms will be set at pricing of the deal. According to Encore Capital Group, only the size, due 2032 maturity, senior secured status, use of proceeds, and private-offering structure have been specified at this announcement stage.