By Lisa Kerner
Charlotte, N.C., Feb. 14 - Encore Capital Group, Inc. issued a second tranche of senior secured notes due Sept. 17, 2017 to Prudential Capital Group in the amount of $25 million through a private placement, the company announced on Monday.
The transaction is a follow-on to Encore's previously announced $50 million transaction with Prudential in September.
While the second tranche of notes was issued under the same terms and conditions as the first tranche, the second tranche bears an annual interest rate of 7.375%, compared with the 7.75% annual interest rate of the first tranche.
As previously reported, interest on the notes is payable quarterly, and the notes are guaranteed in full by some Encore subsidiaries and a pledge of their assets.
Encore may prepay at any time all, or from time to time any part of, the notes, in an amount not less than $5 million in the case of partial prepayment, at par plus a make-whole amount determined using Treasuries plus 50 basis points.
Encore also announced that its revolving credit facility was increased to $410.5 million from $360.5 million.
"By increasing our revolving credit facility and securing additional financing in the form of a second tranche of seven-year notes, Encore has increased the average maturity of its debt at favorable rates, reduced its reliance on a single source of debt financing and strengthened its overall balance sheet," executive vice president and chief financial officer Paul Grinberg said in a company news release.
Encore is a San Diego-based distressed consumer debt management company.
| Issuer: | Encore Capital Group Inc.
|
| Issue: | Senior secured notes
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| Amount: | $75 million
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| Maturity: | Sept. 17, 2017
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| Price: | Par
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| Make-whole call: | At Treasuries plus 50 bps
|
| Purchasers: | Prudential Insurance Co. of America, Pruco Life Insurance Co., Prudential Retirement Insurance and Annuity Co., Prudential Annuities Life Assurance Corp.
|
| Distribution: | Private placement
|
|
|
| First tranche
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| Amount: | $50 million
|
| Coupon: | 7.75%, payable quarterly
|
| Settlement date: | Sept. 20
|
|
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| Second tranche:
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| Amount: | $25 million
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| Coupon: | 7.375%, payable quarterly
|
| Settlement date: | Feb. 10
|
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