Encore Capital Group completes private placement of $50 million in seven-year 7.75% notes

By Lisa Kerner

Charlotte, N.C., Sept. 21 - Encore Capital Group Inc. issued $50 million of seven-year, 7.75% senior secured notes to Prudential Capital Group in a private placement.

Proceeds were used primarily to fund the repayment of the company's remaining $42.9 million of convertible senior notes that matured Monday.

"This transaction affords us access to capital in the private placement market and allows us to extend the average duration of our liabilities at attractive fixed rates," Encore executive vice president and chief financial officer Paul Grinberg said in the release.

Encore, a San Diego-based distressed consumer debt management company, said it also amended its Feb. 8, 2010 revolving credit facility, allowing it to issue up to $25 million of additional notes to Prudential Capital under equivalent terms as the senior secured note agreement.

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