Key Developments: Encore Capital Group Inc (ECPG.O)
33.33USD
23 May 2013
$0.49 (+1.49%)
$32.84
$32.53
$33.69
$32.20
236,780
208,231
$33.75
$23.54
Latest Key Developments (Source: Significant Developments)
Encore Capital Group Inc Announces Board Change
Encore Capital Group Inc announced that its board of directors has elected Ken Vecchione to succeed Brandon Black as Chief Executive Officer(CEO). To effect the transition, Vecchione will serve as president while Black will continue serving as CEO up through May 31, 2013, after which Black will remain available to the board and management on a consulting basis. Full Article
Encore Capital Group Inc Announces Acquisition of Asset Acceptance Capital Corp
Encore Capital Group Inc and Asset Acceptance Capital Corp announced that Encore has entered into an agreement to acquire Asset Acceptance Capital Corp. Based in Warren, Michigan, Asset Acceptance has decades of experience in buying consumer receivables across a broad range of asset classes, as well as a tenured workforce. Under the terms of the agreement, Encore will acquire Asset Acceptance for $6.50 per share, which represents a total equity value of approximately $200 million, representing a 24% premium to AACC's 30 day volume weighted average share price. Asset Acceptance shareholders will have the option to receive their consideration in cash or Encore stock or any combination of cash and Encore stock, at their election, with the aggregate stock consideration across all stockholders capped at 25% of the total equity consideration to be received. Subject to regulatory approval and Asset Acceptance shareholder approval, the acquisition is expected to close during the second quarter of this year. Encore and Asset Acceptance were advised respectively by Morgan Stanley and William Blair Full Article
Encore Capital Group Inc Announces Private Placement Of $15 Million Additional Convertible Senior Notes
Encore Capital Group Inc announced that previously Encore Capital Group, Inc. (Company) sold $100,000,000 in aggregate principal amount of the Company's 3.00% Convertible Senior Notes due 2017 in a private placement transaction. The Notes were issued pursuant to an Indenture, dated November 27, 2012 , between the Company and Union Bank, N.A., as trustee. On December 6, 2012 , the initial purchasers exercised, in full, their option to purchase an additional $15,000,000 in aggregate principal amount of the Notes. The Company announced the closing of the sale of the Additional Notes. In connection with the initial purchasers' exercise of their option to purchase the Additional Notes, the Company entered into convertible note hedge transactions with certain financial institutions. The net proceeds from the sale of the Additional Notes were approximately $14.6 million , after deducting estimated fees and expenses and the initial purchasers' discounts and commissions. The Company used approximately $1.5 million of the net proceeds to pay the cost of the additional convertible note hedge transactions, taking into account the proceeds to the Company of the additional warrant transactions; and the balance of the net proceeds for general corporate purposes. Full Article
Encore Capital Group Inc Prices Private Placement Of Convertible Senior Notes
Encore Capital Group Inc announced that it has priced $100,000,000 aggregate principal amount of 3.00% convertible senior notes due 2017 (the "notes") to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In connection with the offering, the Company has granted the initial purchasers an option to purchase up to an additional $15,000,000 aggregate principal amount of such notes to cover sales in excess thereof. The Company estimates that the net proceeds from the offering will be approximately $96.5 million, after deducting the initial purchasers' discounts and commissions and the estimated offering expenses payable by it. The Company intends to use: approximately $10.0 million of the net proceeds from this offering to pay the cost of certain convertible note hedge transactions, taking into account the proceeds to the Company of certain warrant transactions; approximately $25 million of the net proceeds from this offering to repurchase shares of the Company's common stock from purchasers of notes in this offering in privately negotiated transactions concurrently with this offering; approximately $61.5 million of the net proceeds from this offering to repay borrowings under the Company's revolving credit facility; and the remainder of the net proceeds from this offering, if any, for general corporate purposes. Full Article
Encore Capital Group Inc Announces Private Placement Of Convertible Senior Notes
Encore Capital Group Inc announced that it has commenced a private offering, subject to market and other conditions, of $100,000,000 aggregate principal amount of convertible senior notes due 2017 (the "notes"). In connection with the offering, the Company expects to grant the initial purchasers an option to purchase up to an additional $15,000,000 aggregate principal amount of such notes to cover sales in excess thereof. The notes will be convertible, if certain conditions are met, into cash and, in certain circumstances, shares of the Company's common stock, based on a volume-weighted average price of the common stock on each day of an observation period. The Company intends to use: portion of the net proceeds from this offering to pay the cost of certain convertible note hedge transactions (described below), taking into account the proceeds to the Company of certain warrant transactions (described below); up to $25 million of the net proceeds from this offering to repurchase shares of the Company's common stock from purchasers of notes in this offering in privately negotiated transactions concurrently with this offering; approximately $61.5 million of the net proceeds from this offering to repay borrowings under the Company's revolving credit facility; and the remainder of the net proceeds from this offering, if any, for general corporate purposes. Full Article
Encore Capital Group Inc Announces $50 Million Share Repurchase Program
Encore Capital Group Inc announced the approval of a $50 million share repurchase program by its Board of Directors. The share repurchase program is expected to be executed over the course of the next year. Full Article
Encore Capital Group Inc Announces $575 Million, Five-Year Credit Facility
Encore Capital Group, Inc., through its subsidiaries (the Company), announced the closing of a $575 million credit facility (the Facility). The Facility consists of a five-year, $425 million revolving credit facility and $100 million term note, each maturing in November 2017 and a 3-year, $50 million 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 $200 million. The facility amends the Company's pre-existing $555.5 million revolving credit agreement that was scheduled to expire in December 2013. SunTrust Robinson Humphrey acted as syndication agent and administrative agent, as well as a lender under the new agreement. Bank of America Merrill Lynch acted as syndication agent, as well as a lender. The facility also includes Morgan Stanley, Deutsche Bank, Fifth Third Bank, and ING Capital, among other lenders Full Article
Encore Capital Group Inc Announces Exercise Of Underwriter's Over-Allotment Option From Selling Stockholders' Shares
Encore Capital Group Inc announced that the underwriter of the previously announced public offering has exercised its over-allotment option to purchase an additional 182,000 shares of the Company's common stock from Red Mountain Capital Partners II, L.P. and Red Mountain Capital Partners III, L.P.. Together with the shares sold pursuant to the over-allotment option, the Selling Stockholders have sold a total of 1,395,799 shares of the Company's common stock in the underwritten public offering. The Company did not receive any proceeds from the sale of the shares by the Selling Stockholders. Immediately after the exercise of the over-allotment option, the Selling Stockholders owned, in the aggregate, 982,036 shares of the Company's common stock, or approximately 3.96% of the Company's outstanding shares. The Company's board of directors consists of eight members, two of whom, Messrs. Mesdag and Teets, are affiliated with the Selling Stockholders. Messrs. Mesdag and Teets have indicated that they intend to remain on the Board. The Selling Stockholders have been stockholders of the Company since April 2006. JMP Securities LLC acted as the sole book-running manager for the offering. Full Article
Encore Capital Group Inc Announces Closing of Public Offering of Common Stock by Selling Stockholders
Encore Capital Group Inc announced the closing of the previously announced underwritten public offering of 1,213,799 shares of its common stock by Red Mountain Capital Partners II, L.P. and Red Mountain Capital Partners III, L.P. (the "Selling Stockholders"), two of the Company's stockholders, at a price to the public of $28.50 per share. Each of the Selling Stockholders is a holding vehicle of Red Mountain Partners, L.P. The Company did not receive any proceeds from the sale of the shares by the Selling Stockholders. Immediately after the closing, the Selling Stockholders owned, in the aggregate, 1,164,036 shares of common stock, or approximately 4.69% of the Company's outstanding shares. The Selling Stockholders have been stockholders of the Company since April 2006. JMP Securities LLC acted as the sole book-running manager for the offering. Full Article
Encore Capital Group Inc Announces Pricing For Public Offering Of Common Stock By Selling Stockholder
Encore Capital Group Inc announced the pricing for the underwritten public offering of 1,213,799 shares of its common stock by Red Mountain Capital Partners II, L.P. and Red Mountain Capital Partners III, L.P., two of the Company's stockholders, at a price to the public of $28.50 per share. The offering is expected to close on or about August 13, 2012, subject to customary closing conditions. The Company will not receive any proceeds from the sale of the shares by the selling stockholder. JMP Securities LLC is acting as the sole book-running manager for the offering. Full Article
Encore Capital buys Asset Acceptance Capital for $200 million
- Debt collector Encore Capital Group Inc has agreed to buy Asset Acceptance Capital Corp for $200 million to strengthen its position in a highly fragmented industry.
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