Nov. 5, 2012
/PRNewswire/ -- Encore
Capital Group, Inc.
(Nasdaq: ECPG), through its subsidiaries (the "Company"), a leading provider of debt management and recovery solutions for consumers and property owners across a broad range of assets, today reported the successful closing of a
credit facility (the "Facility").
"Especially in this challenging credit environment, we are pleased to increase and extend our facility with additional flexibility that will help us drive towards our growth goals," said
, Executive Vice President and Chief Financial Officer. "Looking at the industry landscape, we believe that the companies that will thrive will be those with a differentiated operating platform and the lowest cost of capital. This facility demonstrates the strength and leadership of our financial capabilities and positions us well for the industry consolidation we anticipate to take place as a result of the regulatory environment."
The Facility consists of a five-year,
revolving credit facility and
term note, each maturing in
and a 3-year,
term note, maturing in November 2015. The facility contains an accordion feature, which allows the Company to request an increase in the Facility by up to
. The facility amends the Company's pre-existing
revolving credit agreement that was scheduled to expire in
Borrowings under the Facility bear interest at either LIBOR, plus a spread that ranges from 250 to 300 basis points for the 5-year tranches and 200 to 250 basis points for the 3-year tranche, depending on the Company's leverage, or an alternate base rate, which can be based on, among several choices, the prime rate plus a spread that ranges from 150 to 200 basis points for the 5-year tranches and 100 to 150 basis points for the 3-year tranche. The Facility also modifies certain provisions of the Company's existing credit facility that allows the Company to continue to expand its business operations.