Encore Capital Group Inc., the San Diego collector of defaulted credit card and other types of debt, said it closed on a $100 million credit facility with Wells Fargo Bank to purchase tax lien certificates from cities in several states.
President Ken Vecchione said the closing of the facility will enable the company to accelerate its efforts in this type of debt acquisition. “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,” Vecchione said.
The package consists of a $100 million revolving credit facility that matures May 15, 2017, with the interest set at Libor plus 3.25 percent, the company said.
Encore CFO Paul Grinberg said the company now has $300 million of capital available to originate tax lien transfers and acquire tax lien certificates.
— SDBJ Staff Report