Encore Capital convertibles increased to $100 million on greenshoe exercise

New York, Oct. 6 - Encore Capital Group Inc. said its recent offering of five-year convertible senior notes is now $100 million in size following the exercise of the $10 million over-allotment option by the underwriters.

The San Diego-based purchaser and manager of charged-off consumer receivables portfolios originally priced $90 million of the notes after the close on Sept. 13, selling them to yield 3.375% with an initial conversion premium of 25%.

JP Morgan and Morgan Stanley were joint bookrunners of the Rule 144A deal.

Encore used $81.2 million of the proceeds to repay borrowing on its $200 million revolving credit facility and $15.8 million for a convertible note hedge and warrant transaction which raised the effective conversion premium to the company to 62.5%.

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