Encore Capital Group Enters New Credit Agreement

TL;DR

ECPG just signed a new credit deal, potentially unlocking more funds.

AI Summary

On March 20, 2024, Encore Capital Group, Inc. entered into a material definitive agreement, specifically a credit agreement, which creates a direct financial obligation for the registrant. The filing does not disclose specific dollar amounts or further details of this agreement.

Why It Matters

This filing indicates Encore Capital Group has secured new financing, which could impact its operational capacity and financial flexibility.

Risk Assessment

Risk Level: medium — Entering into new financial obligations can introduce new risks related to debt covenants, interest rate fluctuations, and repayment capabilities.

Key Players & Entities

• Encore Capital Group, Inc. (company) — Registrant
• March 20, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value Per Share ECPG The NASDAQ Sto
• $500.0 million — al Group, Inc. (the " Company ") issued $500.0 million aggregate principal amount of 9.250% se

Filing Documents

• ck0001084961-20240320.htm (8-K) — 28KB
• exhibit41indenturehy202403.htm (EX-4.1) — 1164KB
• 0001084961-24-000025.txt ( ) — 1511KB
• ck0001084961-20240320.xsd (EX-101.SCH) — 2KB
• ck0001084961-20240320_lab.xml (EX-101.LAB) — 22KB
• ck0001084961-20240320_pre.xml (EX-101.PRE) — 13KB
• ck0001084961-20240320_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On March 20, 2024 , Encore Capital Group, Inc. (the " Company ") issued $500.0 million aggregate principal amount of 9.250% senior secured notes due 2029 (the " Notes ") pursuant to an indenture (the "Indenture") between, among others, the Company, certain subsidiaries of the Company as guarantors, GLAS Trust Company LLC as trustee and Truist Bank as security agent. The Notes are senior secured obligations of the Company, and are fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the Company. The obligations of the Company and the guarantors are secured, together with the Company's other senior secured indebtedness, by substantially all of the assets of the Company and the guarantors. The Notes will accrue interest at a rate of 9.250% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2024. The Notes will mature on April 1, 2029, unless earlier repurchased or redeemed by the Company. The Company used the proceeds from the offering to repay drawings under its revolving credit facility (the "Global Senior Facility") and to pay certain transaction fees and expenses incurred in connection with the offering of the notes. The Company currently intends to use borrowings under the Global Senior Facility or other available sources of financing to redeem its 300.0 million senior secured notes due 2026 on or about November 15, 2024. A copy of the Indenture (including the form of the Notes) is attached as an exhibit to this report and is incorporated herein by reference (and this description is qualified in its entirety by reference to such document). Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. Exhibit Number Description 4.1 Indenture dated March 20, 2024 between Encore Capital Group, Inc., the subsidiary guarantors party thereto, GLAS Trust Company LLC as trustee and Truist Bank as security agent 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ENCORE CAPITAL GROUP, INC. Date: March 21, 2024 /s/ Jonathan C. Clark Jonathan C. Clark Executive Vice President, Chief Financial Officer and Treasurer EXHIBIT INDEX Exhibit Number Description 4.1 Indenture dated March 20, 2024 between Encore Capital Group, Inc., the subsidiary guarantors party thereto, GLAS Trust Company LLC as trustee and Truist Bank as security agent 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

View Full Filing

View this 8-K filing on SEC EDGAR