Encore CapitalGroup Inc.'s indirect subsidiary, Cabot Financial (Luxembourg) SA,has sold £350 million of 7.50% senior secured notes due Oct. 1, 2023, in aprivate placement.
The notes were issued at a price equal to 100% of their facevalue. The notes will bear interest at a fixed rate equal to 7.50% per annum.Interest on the notes will be payable semiannually on April 1 and Oct. 1 eachyear, starting April 1, 2017.
The proceeds from the sale of the notes were £343.3 million.The proceeds were used to redeem Cabot Financial's £265 million in seniorsecured notes due 2019 in full and pay accrued interest on those notes,partially repay amounts outstanding under senior facilities, and for thepayment of fees and expenses in relation to the offering.
In addition, Encore Capital's subsidiary Cabot Financial(U.K.) Ltd. amended its senior secured revolving credit with J.P. Morgan Europe Ltd. asagent and security agent to increase the total amount of the facility to £250million and extend the termination date to Sept. 24, 2019, among other things.