Encore Capital Group Enters Material Definitive Agreement

TL;DR

ECPG just signed a big deal, creating new financial obligations.

AI Summary

On May 21, 2024, Encore Capital Group, Inc. entered into a material definitive agreement, which also created a direct financial obligation for the registrant. The filing details this agreement and related financial obligations.

Why It Matters

This filing indicates a significant new financial commitment or agreement for Encore Capital Group, potentially impacting its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating new financial obligations can introduce financial risks and alter the company's risk profile.

Key Players & Entities

• ENCORE CAPITAL GROUP, INC. (company) — Registrant
• May 21, 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 8.500% se

Filing Documents

• ck0001084961-20240521.htm (8-K) — 28KB
• ex41-hy2xindenturexmay2024.htm (EX-4.1) — 1153KB
• 0001084961-24-000052.txt ( ) — 1502KB
• ck0001084961-20240521.xsd (EX-101.SCH) — 2KB
• ck0001084961-20240521_lab.xml (EX-101.LAB) — 22KB
• ck0001084961-20240521_pre.xml (EX-101.PRE) — 13KB
• ck0001084961-20240521_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On May 21, 2024 , Encore Capital Group, Inc. (the " Company ") issued $500.0 million aggregate principal amount of 8.500% senior secured notes due 2030 (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 8.500% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024. The Notes will mature on May 15, 2030, 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"), to pay certain transaction fees and expenses incurred in connection with the offering of the notes and for general corporate purposes. The Company currently intends to use borrowings under the Global Senior Facility or other available sources of financing to redeem its 350.0 million senior secured notes due 2025 on or about October 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 b

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. Exhibit Number Description 4.1 Indenture dated May 21, 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: May 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 May 21, 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