Encore Capital Raises €325M of 2033 Floating Rate Notes at EURIBOR+3.25%
ECPG•Encore Capital Group upsized its senior secured floating rate note offering to €325 million, issuing notes due July 15, 2033 with a coupon of three-month EURIBOR plus 3.25%. Proceeds will redeem €215 million of 2028 notes, repay revolver drawings and cover issuance expenses after a €750 million 6.625% senior secured notes issue due 2032.
1. Offering Terms
Encore Capital Group priced €325.0 million of senior secured floating rate notes due July 15, 2033, with interest at three-month EURIBOR (0% floor) plus 3.25%, reset quarterly. The notes are senior secured obligations fully guaranteed by material subsidiaries and secured by substantially all assets, representing a €25.0 million upsizing from the initial proposal.
2. Redemption and Repayment Plan
The Company will use proceeds to redeem €215.0 million of its outstanding 2028 senior secured floating rate notes, repay drawings under its revolving credit facility, and cover issuance fees and discounts. On May 11, Encore also launched a $750.0 million 6.625% senior secured notes offering due 2032 to redeem $500.0 million of 9.250% notes due 2029 and €200.0 million of 2028 floating rate notes.
3. Expected Financial Impact
Following these offerings and the use of proceeds, all €415.0 million of 2028 senior secured floating rate notes will be redeemed, and there will be a net repayment under the revolving credit facility. These transactions leave the Company’s fiscal 2026 guidance unchanged while extending debt maturities and potentially stabilizing interest costs.
