Encore Capital plans $550 million senior secured notes offering

Encore Capital Group Inc. (NASDAQ: ECPG) announced its intention to offer $550 million in senior secured notes due 2032 in a private placement to qualified institutional buyers.

The San Diego-based company said the notes will be senior secured obligations guaranteed by substantially all material subsidiaries. The obligations will be secured by substantially all assets of the company and guarantors, alongside other senior secured indebtedness.

Encore Capital plans to use proceeds from the offering, combined with drawings under its revolving credit facility, to redeem $500 million of outstanding 9.250% senior secured notes due 2029 in full. The company also intends to redeem €200 million of its €415 million outstanding senior secured floating rate notes due 2028. Remaining funds will cover estimated fees, expenses and initial purchasers' discounts.

The offering is subject to market and other conditions. Interest rates and other terms will be determined at pricing. The notes will be offered under Rule 144A of the Securities Act of 1933 and outside the United States under Regulation S.

The company stated it continuously considers additional financings, including offerings of senior secured notes in different currencies with fixed or floating interest rates, to fund operations and refinance existing debt obligations.

The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or applicable exemption. The announcement does not constitute an offer to sell or solicitation of an offer to buy the notes.

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