Encore Capital Group announced that it will redeem €200 million of its senior secured floating‑rate notes due 2028. The redemption will be executed on May 28, 2026, with a record date of May 27, 2026, and the company will pay 100 % of the principal amount plus accrued interest.
The €200 million paydown will reduce Encore’s gross debt by the same amount, bringing its debt‑to‑EBITDA ratio closer to the company’s target range of 2.0× to 3.0×. At the end of 2024, the ratio stood at 2.7×, so the redemption is expected to lower the metric and improve leverage and financial flexibility.
The move is part of Encore’s broader strategy to strengthen its balance sheet and support continued investment in distressed consumer‑debt portfolios. By reducing leverage, the company signals confidence in its cash‑flow generation and preserves capital for future portfolio purchases while maintaining disciplined capital allocation.
The redemption is conditioned on receipt of satisfactory funding. Once the funding is secured, the company will proceed with the call, paying the full principal and accrued interest on the scheduled date, thereby completing the debt‑reduction plan.
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