SAN DIEGO, July 16, 2018 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ:ECPG) (“Encore Capital” and
together with its subsidiaries, “Encore”) announced today that it has commenced an underwritten public offering of exchangeable
notes.
Encore Capital Europe Finance Limited (“Encore Finance”), a 100% owned subsidiary of Encore Capital, intends to
offer, subject to market and other conditions, $150,000,000 aggregate principal amount of its exchangeable senior notes due 2023
(the “notes”) in an underwritten registered public offering. The notes will be senior, unsecured obligations of Encore
Finance and will be fully and unconditionally guaranteed, on a senior, unsecured basis, by Encore Capital. In connection with
this offering, Encore Finance expects to grant the underwriters a 30-day option to purchase up to an additional $22,500,000
aggregate principal amount of such notes solely to cover over-allotments on the same terms and conditions. The notes will be
exchangeable, subject to satisfaction of certain conditions and during certain periods, into cash, shares of Encore Capital’s
common stock, or a combination of cash and shares of Encore Capital’s common stock, at Encore Finance’s election. Interest
will be payable semiannually in arrears. The interest rate, exchange rate and other terms of the notes are to be determined
upon pricing of the notes offering.
In connection with the pricing of the notes, Encore Capital expects to enter into privately negotiated capped
call transactions with one or more of the underwriters of the offering and/or their respective affiliates and/or other financial
institutions (the “option counterparties”). The capped call transactions are expected generally to reduce potential dilution to
Encore Capital’s common stock upon any exchange of notes and/or offset any potential cash payments Encore Finance is required to
make in excess of the principal amount of exchanged notes, as the case may be, with such reduction and/or offset subject to a cap.
If the underwriters of the offering exercise their option to purchase additional notes, Encore Capital expects to enter into
additional capped call transactions with the option counterparties.
Encore Capital expects that, in connection with establishing their initial hedges of the capped call
transactions, the option counterparties or their respective affiliates will enter into various derivative transactions with respect
to Encore Capital’s common stock concurrently with, and/or purchase Encore Capital’s common stock shortly after, the pricing of the
relevant notes. This activity could increase (or reduce the size of any decrease in) the market price of Encore Capital’s common
stock or the notes concurrently with, or shortly after, the pricing of the notes. In addition, the option counterparties or their
respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Encore
Capital’s common stock and/or purchasing or selling Encore Capital’s common stock or other securities of Encore’s in secondary
market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during any
observation period related to an exchange of notes). This activity could also cause or avoid an increase or a decrease in the
market price of Encore Capital’s common stock or the notes, which could affect holders’ ability to exchange their notes and, to the
extent the activity occurs during any observation period related to an exchange of notes, it could affect the number of shares and
value of the consideration that holders will receive upon exchange of the notes.
Encore intends to use the net proceeds of the offering to partially fund the acquisition of all the outstanding
equity interests of Janus Holdings Luxembourg S.à r.L. (“Janus”), not currently held directly or indirectly by Encore, and,
immediately following the consummation of such acquisition, the purchase by Janus of all the outstanding equity interests of Cabot
Holdings S.à r.L., not currently held directly or indirectly by Encore, as announced by Encore on May 8, 2018.
SunTrust Robinson Humphrey and Credit Suisse are acting as joint book-running managers for the offering.
The offering is subject to market and other conditions, and there can be no assurance as to whether or when the
offering may be completed, or as to the actual size or terms of the offering.
The notes are being offered pursuant to an effective shelf registration statement that Encore Capital and Encore
Finance have filed with the Securities and Exchange Commission (“SEC”). Before you invest, you should read the prospectus in
that registration statement and other documents Encore has filed with the SEC for more complete information about Encore and this
offering. The offering is being made only by means of a prospectus supplement relating to the offering and the accompanying
prospectus. Copies of the prospectus supplement and accompanying prospectus for the offering may be obtained from SunTrust Robinson
Humphrey, Inc., 3333 Peachtree Road NE, 9th Floor, Atlanta, GA 30326, Attention: Prospectus Department, or by telephone at
1-404-926-5744, by fax at 1-404-926-5464 or by email at strh.prospectus@suntrust.com; or from Credit Suisse Securities (USA) LLC,
Attention: Prospectus Department, One Madison Avenue, New York, New York, 10010, or by telephone at 1-800-221-1037, or by email at
newyork.prospectus@credit-suisse.com. You may also obtain these documents free of charge when they are available by visiting
EDGAR on the SEC’s website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any
sales of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any state or jurisdiction.
About Encore
Encore is an international specialty finance company that provides debt recovery solutions and other related services for
consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of
consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and
ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with
a Consumer Bill of Rights that provides industry-leading commitments to consumers.
Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: “ECPG”) and a
component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500.
Forward Looking Statements
The statements in this press release that are not historical facts, including, most importantly, those
statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation
thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future
operating results, performance, business plans, prospects, the offering, the use of any proceeds from the offering, the terms of
the notes, the capped call transactions and whether the capped call transactions will become effective. For all
“forward-looking statements,” Encore claims the protection of the safe harbor for forward-looking statements contained in the
Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results,
performance or achievements of Encore and its subsidiaries to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are
discussed in the reports filed by Encore with the Securities and Exchange Commission, including the most recent reports on Forms
10-K, 10-Q and 8-K, as they may be amended from time to time. Encore disclaims any intent or obligation to update these
forward-looking statements.
Contacts
Encore Investor Relations
Bruce Thomas
(858) 309-6442
bruce.thomas@encorecapital.com
SOURCE: Encore Capital Group, Inc.
![Primary Logo](https://resource.globenewswire.com/Resource/Download/1854936a-a6ca-431a-96fe-9372bf406e37?size=1)
![](http://www.globenewswire.com/newsroom/ti?ndecode=NzA2MzkjNzMyNzk5NA==)