Encore Capital Group, Inc. Announces Pricing of Upsized Senior Secured Floating Rate Notes Offering
December 08, 2020 at 06:45 pm
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Encore Capital Group, Inc. announced the pricing of its offering of €415.0 million aggregate principal amount of senior secured floating rate notes due 2028 with a coupon of three-month EURIBOR (subject to a 0% floor) plus 4.250%, which was upsized by €140.0 million from €275.0 million, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended 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) 4.250% per annum, reset quarterly, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, beginning on April 15, 2021. The notes will mature on January 15, 2028 unless earlier repurchased or redeemed by the Company. The Company intends to use the proceeds from this offering, together with cash on hand, to redeem in full the outstanding €400.0 million senior secured floating rate notes due 2024 that have a coupon of three-month EURIBOR (subject to a 0% floor) plus 6.375%, issued by Cabot Financial (Luxembourg) II S.A., a wholly owned subsidiary of the Company, and to pay certain transaction fees and expenses incurred in connection with the offering of the notes. Upon completion of the offering and the use of proceeds in connection therewith, the Company expects to record related charges in the fourth quarter of 2020 totaling approximately $11 million after tax.
Encore Capital Group, Inc. is an international specialty finance company. The Company provides debt recovery solutions and other related services for consumers across a range of financial assets. Through its subsidiaries, the Company purchases portfolios of consumer receivables from banks, credit unions, and utility providers. It primarily purchases portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. The Company also provide debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. The Companyâs debt servicing operations include early-stage collections, business process outsourcing and contingent collections for credit originators. The Company mainly provides debt servicing for consumer accounts, but also provides services for business-to-business accounts.
ENCORE CAPITAL GROUP, INC. 
