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.
Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P SmallCap 600, and the Wilshire 4500. More information about the Company can be found at www.encorecapital.com. The Company's website and the information contained therein, is not incorporated into and is not a part of this press release.
Forward Looking Statements
The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These statements may include, but are not limited to, statements regarding our future operating results, performance, business plans or prospects. For all "forward-looking statements," the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
Encore Capital Group, Inc.
Paul Grinberg (858) 309-6904
Adam Sragovicz (858) 309-9509
SOURCE Encore Capital Group, Inc.