By Rebecca Melvin
New York, Sept. 5 – Encore Capital Group Inc. priced $100 million of 3.25% six-year convertible senior notes on Wednesday with an initial conversion premium of 25%, according to a company news release on Thursday.
Pricing came at the cheap end of talk, which was for a 2.75% to 3.25% coupon and a 25% to 30% premium.
Morgan Stanley & Co. LLC was active bookrunner for the Rule 144A deal, which has a $15 million over-allotment option.
The notes are non-callable until Oct. 5, 2022 and then provisionally callable for three years at a 130% price hurdle. There are no puts.
Encore intends to use the proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures, acquisitions or repayment or repurchase of outstanding debt, including its revolving credit facility, its existing convertible notes and its 2023 exchangeable notes.
Encore is a San Diego-based specialty finance company.
| Issuer: | Encore Capital Group Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Oct. 1, 2025
|
| Active bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 3.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $40.00 per share
|
| Conversion rate: | 25.0000 shares
|
| Net share settlement: | Yes
|
| Calls: | Non-callable until Oct. 5, 2022, then subject to 130% price hurdle
|
| Pricing date: | Sept. 4
|
| Distribution: | Rule 144A
|
| Talk: | 2.75%-3.25%, up 25%-30%
|
| Stock symbol: | Nasdaq: ECPG
|
| Stock price: | $32.00 as of Sept. 4 close
|
| Market capitalization: | $1.01 billion
|
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