Encore Capital prices €325 million floating rate notes due 2033

Encore Capital Group Inc. (NASDAQ: ECPG) announced the pricing of €325 million in senior secured floating rate notes due 2033, increasing the offering size from €300 million. The notes carry a coupon rate of three-month EURIBOR plus 3.250%, with EURIBOR subject to a 0% floor.

The notes were offered privately to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States. Interest will be paid quarterly on January 15, April 15, July 15, and October 15 each year, beginning July 15, 2026. The notes mature on July 15, 2033.

The company plans to use proceeds to redeem €215 million of its €415 million outstanding senior secured floating rate notes due 2028, repay revolving credit facility drawings, and cover offering expenses and fees.

Encore Capital previously launched a $750 million offering of 6.625% senior secured notes due 2032 on May 11, 2026, expected to be issued May 22, 2026. Proceeds from that offering will be used to redeem $500 million of 9.250% senior secured notes due 2029 and €200 million of the 2028 floating rate notes.

Following completion of both offerings, the company's €415 million of outstanding senior secured floating rate notes due 2028 will be fully redeemed, with a net repayment of revolving credit facility drawings.

The company stated these transactions do not change its fiscal year 2026 guidance provided on May 6, 2026. The notes are senior secured obligations guaranteed by substantially all material subsidiaries and secured by substantially all company assets.

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