By Lisa Kerner
Charlotte, N.C., Sept. 21 - Encore Capital Group Inc. announced it has issued $50 million in 7.75% senior secured notes to Prudential Capital Group in a private placement.
The notes mature in 2017 with principal amortization beginning in the third year, according to a company news release.
Encore said proceeds were used primarily to fund the repayment of the remaining $42.9 million of convertible senior notes that matured Monday, leaving the company's leverage level unchanged.
"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 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.
The facility maximum was increased to $460.5 million from $427.5 million, and the maturity was extended to Dec. 31, 2013 from May 3, 2013.
Encore Capital is a San Diego-based distressed consumer debt management company.
| Issuer: | Encore Capital Group Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $50 million
|
| Maturity: | 2017
|
| Coupon: | 7.75%
|
| Price: | Par
|
| Announcement date: | Sept. 21
|
| Purchaser: | Prudential Capital Group
|
| Distribution: | Private placement
|
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