This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Encore Capital Group Announces $100 Million Credit Facility For The Purchase Of Tax Lien Certificates

Stocks in this article: ECPG

SAN DIEGO, May 20, 2013 /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 $100 million asset-backed credit facility (the "Facility") with Wells Fargo Bank, N.A. (the "Lender").  The Facility will be used to finance the acquisition of tax lien certificates from municipalities in multiple states.

"We are driving growth for Propel through three separate strategies: optimizing the tax lien transfer business in Texas, expanding our consumer-friendly model to other states, and acquiring tax lien certificates in states that already have established practices," said Encore Capital Group President Ken Vecchione.  "The closing of the Wells Fargo Credit facility will enable us to accelerate our efforts related to the third prong of our strategy. We expect to deploy significant capital over the next few years in this asset class, and with this facility, we have a solid foundation on which to build."

The Facility consists of a $100 million revolving credit facility maturing on May 15, 2017.  Borrowings under the Facility bear interest at LIBOR plus 3.25%. The assets acquired by Encore's subsidiaries through the Facility will be pledged to the Lender as security and will be serviced by Propel Financial Services, LLC.

"We are pleased to demonstrate once again our ability to access the financial markets on favorable terms. Combined with our existing facility at Propel, we now have $300 million of capital available to originate tax lien transfers and acquire tax lien certificates," said Executive Vice President and Chief Financial Officer Paul Grinberg. "We're also delighted to welcome Wells Fargo – another highly respected financing partner – to our company."

Encore Capital Group is a leading provider of debt management and recovery solutions for consumers and property owners across a broad range of assets.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs