Encore Capital Group Inc., the San Diego collectors of charged-off credit card debt, said it closed the purchase of Michigan-based Asset Acceptance Capital Corp. for an undisclosed price.
Encore CEO Ken Vecchione said the acquisition provides Encore not only an additional portfolio but one with valuable operations capabilities and synergies.
Consumers will also benefit as Encore extends its consumer bill of rights to millions of more people who are on the road to financial recovery, he said.
Encore recently announced the acquisition of a controlling stake in Cabot Credit Management, based in the United Kingdom and Ireland, the first international purchase in the company’s history.
In other news, Encore said it launched a private offering of $110 million in convertible senior notes due 2020. The notes will be convertible, if certain conditions are met, into cash, shares of common stock or a combination of each, at the company’s election.
The company said it plans to use the proceeds from the offering to pay the cost of certain capped call transactions and for a portion of the purchase price for the controlling interest in Cabot Holdings.
Initial purchasers of the notes will be granted the option to buy an additional $16.5 million in the notes.
— SDBJ Staff Report