Commentary & Deal Flow

Priced: 7NC2: 3mE+325bp (0% floor) at 100

Launched: 7NC2: €325m @ E+325bp / Par
Spread set at: 7NC2: €325m @ E+337.5bp / Par
Guidance: 7NC2: E+350a / Par
IPTs: 7NC2: E+350/375 at par

• Issuer: Encore Capital Group, Inc. (Ticker: ECPG)
• Issuer Description: provides debt recovery solutions in the US (Midland Credit Management), the UK (Cabot Credit Management), and other countries. HQ: San Diego, CA.
• Issuer Ratings: Ba2/BB+ (stable/--/negative) (Moody's/Fitch)
• Instrument Ratings: Ba3/BB+ (Moody's/Fitch)
• Format: 144A-for-Life / Reg S, no reg rights
• Size: €325,000,000 (up from €300,000,000)
• Settlement: 28-May-26 (T+10)
• Maturity: 15-Jul-33
• Ranking: Senior Secured FRN
• Call Protection: NC2 (07/15/28), 101 07/15/28, 100 07/15/29. MWC B+50bp. Equity claw: 2y 40% at 103.25.
• Change of Control: 101
• Pricing: 3mE+325 / Par
• Interest Payment Dates: 15-Jan, 15-Apr, 15-July, 15-Oct, starting 5-Jul-26
• Day Calculation: Act/360
• Use of Proceeds: To redeem the remaining €215m of its €415m sr sec FRN due 15-Jan-28 (callable at 100), and pay down revolver. The other €200m of the FRN notes due 2028 will be redeemed using a portion of the proceeds of the US$750m 6.625% sr sec notes due 2032 that priced 15-May-26.
• Denominations: €100,000 x €1,000
• ISINs:
• • RegS: XS3307303159
  • 144A: XS3307303407
• Listing: An application has been made to the Official List of the Luxembourg Stock Exchange
• Governing Law: New York
• Sole Physical Bookrunner: Morgan Stanley (B&D)
• Global Coordinators and Lead Joint Bookrunners: DNB Carnegie, ING, MUFG
• Lead Bookrunners: BofA, Citizens, Fifth Third, Truist, WFS
• Joint Bookrunners: Axos, RBC, Zions
• Marketing: Small Group Meetings Tuesday 12-May and Wednesday 13-May (GIC: 2pm UKT Tuesday 12-May)
• Timing: Books Close 3:30PM UKT 13-May (from 3:00pm UKT and 2:30pm UKT); Allocations thereafter
• NetRoadshow & OM: https://www.netroadshow.com/events/login/1PeTHmohCFFzoE95joh1NuR62SeLMMl2worqr
• FTT: 08:00 UKT Thursday 14-May-26
• Target Market: Manufacturer target market (MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only. No PRIIPs key information document (KID) has been prepared as not available to retail in EEA or the United Kingdom.