ECPG · Encore Capital Group, Inc.

This is a HIGH materiality debt refinancing event that materially reshapes Encore’s capital structure. The $750.0 million private placement replaces higher-cost and floating-rate obligations with a fixed-rate, longer-maturity instrument—directly lowering interest expense and reducing refinancing risk over the next three years. By retiring the $500.0 million tranche of 9.250% notes due 2029, the Company eliminates a significant near-term maturity and avoids a substantial redemption premium; simultaneously, redeeming €200.0 million of its €415.0 million floating-rate notes due 2028 meaningfully de-risks earnings sensitivity to rising benchmark rates. The notes’ senior secured status—backed by substantially all assets and fully guaranteed by material subsidiaries—preserves lender priority and covenant protections without diluting equity or triggering change-of-control provisions. Importantly, the offering was conducted under Rule 144A and Regulation S, confirming it is an unregistered private placement with no public registration or secondary market liquidity implications at launch. The Company explicitly states this transaction does not alter its fiscal 2026 guidance issued May 6, 2026, indicating management views the refinancing as operationally neutral in the near term but strategically beneficial for balance sheet flexibility and cost optimization. No forward-looking financial projections, earnings impact quantification, or revised capital allocation policy were disclosed beyond the stated use of proceeds.