SAN DIEGO - Encore Capital (NASDAQ:ECPG) Group, Inc. (NASDAQ:ECPG), a specialty finance company, announced today its plan to offer $400 million in senior secured notes due 2029 to qualified institutional buyers and non-U.S. persons. The notes, which are to be sold in a private offering, will serve as senior secured obligations guaranteed by the company's material subsidiaries.
The proceeds from the sale will be used primarily to repay the company's revolving credit facility, known as the Global Senior Facility, and to cover transaction fees and expenses related to the offering. Additionally, Encore Capital intends to redeem its £300 million senior secured notes due 2026 using financing from the Global Senior Facility or other sources around November 15, 2024.
The interest rate and specific terms of the notes will be finalized upon pricing of the offering. As the notes are not registered under the Securities Act of 1933, they cannot be offered or sold in the United States without an applicable exemption from registration requirements.
This press release contains forward-looking statements concerning the proposed offering, such as the anticipated size, timing, and use of proceeds, as well as the potential redemption of existing notes. These statements are subject to various risks and uncertainties, including market conditions and the company's performance as detailed in reports filed with the U.S. Securities and Exchange Commission.
Encore Capital has not guaranteed the completion of the offering nor the application of its proceeds as described. The company will not update these forward-looking statements beyond the issuance date of the press release except as legally required.
The information about the planned offering is based on a press release statement from Encore Capital Group, Inc.
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