Encore Capital Announces Proposed $400M Senior Secured Notes Offering
Portfolio Pulse from Benzinga Newsdesk
Encore Capital Group, Inc. (ECPG) plans to offer $400 million in senior secured notes due 2030 to qualified institutional buyers and non-U.S. persons. The notes will be guaranteed by the company's material subsidiaries and secured by their assets. Proceeds will be used to repay the Global Senior Facility, cover transaction fees, and for general corporate purposes. ECPG also plans to redeem its €350 million senior secured notes due 2025 using these or other funds.
May 13, 2024 | 11:19 am
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Encore Capital's proposed $400M notes offering aims to refinance existing debt and support general corporate activities, potentially improving its financial flexibility and credit profile.
The offering is likely to be viewed positively by investors as it demonstrates proactive debt management and financial planning. By refinancing existing debt and securing funds for corporate purposes, ECPG is potentially reducing its interest expenses and improving its balance sheet. However, the final impact will depend on the interest rates of the new notes and the company's ability to manage its overall debt levels effectively.
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