Encore Capital greenshoe brings 3% convertibles to $172.5 million

By Jennifer Chiou

New York, July 23 - Encore Capital Group Inc. announced the full exercise of the greenshoe for its 3% seven-year convertible senior notes, bringing the total issue amount to $172.5 million from the original upsized $150 million.

The notes were priced at par after the market close on June 18 with a 30% initial conversion.

The offering was initially talked at $110 million in size. Pricing came at the rich end of talk, which was for a 3% to 3.5% coupon and a 25% to 30% premium.

Active bookrunners were Morgan Stanley & Co. LLC and Barclays, and passive bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBS Securities Inc.

There greenshoe was previously upsized from $16.5 million.

The notes will be guaranteed on a senior unsecured basis by Midland Credit Management Inc., a subsidiary of the company.

The notes are non-callable, with no puts.

Encore is a San Diego-based consumer accounts receivable management firm.

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