Loan & DebtJul 22, 2026, 04:08 PM
Encore Capital to Redeem $230M Convertible Senior Notes
AI Summary
Encore Capital Group announced it will redeem all $230.0 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2029 on September 24, 2026. The redemption is triggered by the company's common stock price exceeding 130% of the conversion price for a specified period. Holders have the option to convert their Notes into common stock at an increased conversion rate of 16.2056 shares per $1,000 principal amount until September 22, 2026. Additionally, the company expects to unwind and terminate related capped call transactions.
Key Highlights
- Encore Capital Group to redeem $230.0 million aggregate principal amount of 4.00% Convertible Senior Notes due 2029.
- Redemption Date is September 24, 2026.
- Redemption Price is approximately $1,001 per $1,000 principal amount, including accrued interest.
- Notes are being redeemed because common stock price exceeded 130% of conversion price for 20 trading days.
- Holders can convert Notes until 5:00 p.m. (NYC time) on September 22, 2026.
- Conversion rate increased to 16.2056 shares per $1,000 principal amount due to make-whole provision.
- Capped call transactions entered into with the Notes' pricing are expected to unwind and terminate.
Price Impact
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