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SAN DIEGO – Encore Capital (NASDAQ:) Group, Inc. (NASDAQ:ECPG) has upsized its private offering of senior secured notes, increasing the aggregate principal amount from $400 million to $500 million, the company reported. The 9.250% senior secured notes, due in 2029, were priced at an issue rate of 100%.
The notes, set to mature on April 1, 2029, will be guaranteed by the company’s material subsidiaries and backed by a significant portion of the company’s and guarantors’ assets. Interest on these notes is to be paid semi-annually starting October 1, 2024.
Encore Capital intends to allocate the proceeds from the offering to repay borrowings under its Global Senior Facility and cover transaction fees and expenses related to the offering. Additionally, the company plans to redeem its £300 million senior secured notes due in 2026 using either the Global Senior Facility or other financing sources around November 15, 2024.
The notes have not been registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers and non-U.S. persons in compliance with the applicable regulations. The company made clear that the notes could not be offered or sold within the United States without registration or an exemption from registration requirements.
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