ENCORE CAPITAL GROUP, INC. (NASDAQ:ECPG) Files An 8-K Entry into a Material Definitive Agreement

ENCORE CAPITAL GROUP, INC. (NASDAQ:ECPG) Files An 8-K Entry into a Material Definitive AgreementItem 2.03Entry into a Material Definitive Agreement.

On August 23, 2017, Cabot Securitisation UK Limited (“Cabot Securitisation”), an indirect subsidiary of Encore Capital Group, Inc., entered into a senior facility agreement (the “Senior Facility Agreement”) between (amongst others) Cabot Securitisation, Cabot Financial (UK) Limited (“Cabot Financial”), HSBC Corporate Trust Company (UK) Limited as Security Trustee and Senior Agent and Goldman Sachs International Bank as Senior Lender for an initial committed amount of £260 million with an uncommitted accordion feature of £90 million. Cabot Securitisation and Cabot Financial are both indirect subsidiaries of Cabot Credit Management Limited (together with its subsidiaries, the “Cabot Group”). The Senior Facility Agreement has initial availability periods ending in September 2020 and initial repayment dates ending in September 2022. The obligations of Cabot Securitisation under the Senior Facility Agreement are secured by first ranking security interests over all of Cabot Securitisation’s property, assets and rights (including receivables purchased from Cabot Financial from time to time that meet certain eligibility criteria). Funds drawn under the Senior Facility Agreement will bear interest at a rate perannum equal to LIBOR plus a margin of 2.85% perannum plus a step-up margin ranging from zero to 1.00%. Cabot Securitisation intends to initially draw down £260 million, a portion of which will be used by the Cabot Group to redeem £150 million in Senior Secured Notes due 2020 that were issued by Marlin Intermediate Holdings plc, another member of the Cabot Group.

A copy of the Senior Facility Agreement is attached as an exhibit to this report and is incorporated herein by reference (and the foregoing description is qualified in its entirety by reference to such document).

Item 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 2.03 of this Current Report on Form 8-K is incorporated by reference.

Item 2.03.Financial Statements and Exhibits.

ENCORE CAPITAL GROUP INC ExhibitEX-4.1 2 ex41-projectarkexseniorfac.htm EXHIBIT 4.1 Exhibit Exhibit 4.1EXECUTION VERSIONDATED 23 August 2017(1)CABOT SECURITISATION UK LIMITED as Purchaser and Borrower(2)CABOT SECURITISATION UK HOLDINGS LIMITED as Holdco(3)GOLDMAN SACHS INTERNATIONAL BANK as Senior Lender(4)GOLDMAN SACHS INTERNATIONAL BANK as Arranger(5)CABOT FINANCIAL (UK) LIMITED as Transferor(6)CABOT CREDIT GROUP MANAGEMENT LIMITED as Servicer(7)HSBC CORPORATE TRUSTEE COMPANY (UK) LIMITED as Security Trustee(8)HSBC BANK PLC as Senior Agent (9)CABOT FINANCIAL (EUROPE) LIMITED as Collections Account Holder£260,…To view the full exhibit click here
About ENCORE CAPITAL GROUP, INC. (NASDAQ:ECPG)
Encore Capital Group, Inc., through its subsidiaries, is a specialty finance company providing debt recovery solutions for consumers and property owners across a range of financial assets. The Company operates through two segments: Portfolio Purchasing and Recovery, and Tax Lien Business. Its portfolio purchasing and recovery segment purchases portfolios of defaulted consumer receivables at discounts and manages them by partnering with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, and telecommunication companies. Defaulted receivables also include receivables subject to bankruptcy proceedings. In addition, the Company assists property owners delinquenting on their property taxes by structuring monthly payment plans and purchases delinquent tax liens directly from taxing authorities.