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Encore Capital Group, Inc. (NASDAQ:ECPG), a $906 million market cap debt recovery specialist with $3.81 billion in total debt, announced an expansion and amendment to its global senior secured revolving credit facility. The company, which maintains strong liquidity with a current ratio of 16.56 according to InvestingPro data, reported on Thursday that it has increased its credit facility from $1.295 billion to $1.485 billion. The amendment also extends the facility’s termination date from September 2028 to September 2029, with the exception of a $69.5 million tranche that maintains the original termination date.
The additional commitment and the amended terms were formalized in an Amendment Letter dated May 22, 2025. This move by Encore Capital is part of its broader financial strategy to secure long-term financing. While the company reported losses in the last twelve months, InvestingPro analysts expect a return to profitability this year. The Amendment Letter has been filed with the SEC and is incorporated by reference into the 8-K filing.
This financial maneuver by Encore Capital Group reflects the company’s efforts to strengthen its liquidity and financial flexibility. With annual revenue of $1.38 billion and volatile stock performance, the company’s financial metrics reveal important insights available through InvestingPro’s comprehensive research reports. The updated agreement was reached with Truist Bank, acting as Agent and Security Agent, alongside several guarantors, banks, and other financial institutions that are part of the agreement.
The company, headquartered in San Diego, California, is incorporated in Delaware and has been assigned the IRS Employer Identification Number 48-1090909. Encore Capital Group has been known by different names in the past, including MCM Capital Group Inc. and Midland Corp of Kansas.
The details of the updated credit facility were provided in a recent SEC filing, which serves as the source for this report. The filing does not offer any commentary on the strategic implications of the increased credit facility for Encore Capital Group or the broader industry.
In other recent news, Encore Capital Group reported a strong financial performance for the first quarter of 2025, with earnings per share (EPS) of $1.93, significantly surpassing the forecast of $1.45. This impressive result was driven by robust global collections and portfolio purchases, alongside strategic investments in the U.S. market. Revenue for the quarter was recorded at $388.45 million, while actual collections reached $655 million, marking an 18% year-over-year increase. Encore Capital’s net income also saw a substantial rise, reaching $47 million, which represents a 101% year-over-year increase.
The company maintained its leadership position in the U.S. debt purchasing market while expanding its presence in Europe. In addition to the strong earnings performance, Encore Capital has initiated a share repurchase program, executing modest buybacks in the first quarter, with the company’s management emphasizing the importance of share repurchases. JMP Securities reaffirmed its Market Outperform rating for Encore Capital, maintaining a $55 price target based on their updated 2026 GAAP EPS estimate. The firm also reiterated its full-year guidance, projecting global portfolio purchases to exceed $1.35 billion in 2025, with global collections expected to grow by 11% to $2.4 billion.
Encore Capital’s positive adjustment to expected recoveries and strong purchasing and collection dynamics indicate a period of growth and stability for the company. The company’s UK business, which had previously faced challenges, is now showing signs of recovery, adding confidence to the firm’s financial projections. The focus on share repurchases and the firm’s solid position in the U.S. market suggest that Encore Capital is well-positioned for continued success.
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