Encore Capital Group Calls Redemption of 4.00% Convertible Notes Due 2029

What Happened
Encore Capital Group, Inc. filed an 8‑K on July 22, 2026 announcing a Redemption Notice calling for the redemption of all outstanding 4.00% Convertible Senior Notes due 2029. The Redemption Date is September 24, 2026. Holders may submit Notes for conversion up to 5:00 p.m. (NY time) on the second scheduled trading day before the Redemption Date; conversions after Notes are called will be settled in cash.

Key Details

• Redemption Notice issued: July 22, 2026. Redemption Date: September 24, 2026.
• Conversion rates: currently 15.1763 shares per $1,000 principal; for Notes converted during July 22–September 22, 2026 the Conversion Rate is increased to 16.2056 shares per $1,000.
• Estimated cash impact: if all called Notes were converted and the company’s stock price remained equal to the July 21, 2026 close during the valuation period, Encore expects an aggregate cash payment of ~$332.5 million to settle those conversions.
• Capped-call unwind: Encore expects its February 2023 privately negotiated capped call transactions to unwind/terminate in connection with the Redemption; the company would receive cash (or shares) equal to the termination value, while option counterparties may sell shares or unwind derivatives—activity that could put downward pressure on the stock price.

Why It Matters
This filing signals a planned capital-structure change that could affect Encore’s cash position and its stock. Conversions or cash redemptions of the Notes will either dilute common shares (if conversions settle in stock under certain terms) or require substantial cash outflows; the filing quantifies a potential ~$332.5M cash settlement under a specific price assumption. The unwind of related capped-call transactions will generate value to the company but may prompt secondary market selling by counterparties, which could weigh on the share price in the run-up to or following the Redemption Date. Investors should watch conversion activity, the final treatment of conversions (cash vs. stock), and any announced unwind settlement amounts.

(Contains forward‑looking statements and noted risks as described in the company’s 8‑K.)