Capital Group Renews Senior Credit Facilities

Encore Capital Group Inc. was steady in after-hours trading, with shares of the specialty lender tonight unchanged at $28.35 each after saying it has revised its credit agreement with a bank syndicate, boosting its borrowing capacity available under the company’s revolving credit facility by $36.1 million – or just under 5% – to $781.7 million.

The restated credit agreement increases Encore’s term loan by $7.6 million to $166.4 million, with $32.4 million in borrowing capacity still available under the term loan and continues to provide an accordion feature increasing the size of the senior facilities by up to $250 million. The new facilities largely mature in five years in December 2021 and continues substantially all of its existing terms.

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