ENCORE CAPITAL GROUP INC (ECPG): debt financing — Encore Capital issues $230M of 4.00% convertible notes due 2029, repurchases $154.8M of 2023 exchangeable notes

ENCORE CAPITAL GROUP INC

Issued $230M aggregate principal of 4.00% convertible senior notes due 2029, including $30M over-allotment.
Initial conversion price ~$65.89/share, a 27.5% premium over $51.68 closing price on Feb 28, 2023.
Net proceeds ~$223.3M; used $192.5M to repurchase $154.8M of 2023 exchangeable notes and $18.5M for capped call transactions.
Capped call transactions with cap price ~$82.69/share to reduce potential dilution upon conversion.
Remaining proceeds for general corporate purposes, including potential debt repayment or stock repurchases.

item 1.01 item 2.03 item 3.02 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ENCORE CAPITAL GROUP INC incurred convertible notes of $230.0 million aggregate principal amount with Truist Bank at 4.00% per annum maturing March 15, 2029.

Instrument: convertible notes
Principal: $230.0 million aggregate principal amount
Counterparty: Truist Bank
Rate: 4.00% per annum
Maturity: March 15, 2029
Event: incurrence

Exact text from the filing

On March 3, 2023, Encore Capital Group, Inc. (the “Company”) closed its previously announced offering of $230.0 million aggregate principal amount of 4.00% Convertible Senior Notes due 2029 (the “Notes”)

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ENCORE CAPITAL GROUP INC entered into Indenture with Truist Bank valued at $230.0 million (effective 2023-03-03).

Action: entry
Agreement: notes offering
Counterparty: Truist Bank
Value: $230.0 million
Effective: 2023-03-03

Exact text from the filing

On March 3, 2023, Encore Capital Group, Inc. (the “Company”) closed its previously announced offering of $230.0 million aggregate principal amount of 4.00% Convertible Senior Notes due 2029 (the “Notes”), which includes $30.0 million aggregate principal amount of Notes issued pursuant to the exercise in full of the over-allotment option as described below. The Notes were issued pursuant to an indenture (the “Indenture”) dated as of March 3, 2023 between the Company and Truist Bank, as trustee (the “Trustee”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ENCORE CAPITAL GROUP INC entered into purchase agreement with certain initial purchasers valued at $200.0 million (effective 2023-02-28).

Action: entry
Agreement: underwriting
Counterparty: certain initial purchasers
Value: $200.0 million
Effective: 2023-02-28

Exact text from the filing

On February 28, 2023, the Company entered into a purchase agreement with certain initial purchasers relating to the issuance and sale of $200.0 million of Notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

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91 debt financings filed in the last 30 days. Browse all debt financings →

ENCORE CAPITAL GROUP INC filing history →

Source: SEC EDGAR

accession 0001084961-23-000019

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