Transaction Provides Expanded Opportunities to Invest Capital for Greater Returns, Generates More than $150 Million in After-Tax Proceeds for Encore
SAN DIEGO, March 31, 2016 (GLOBE NEWSWIRE) -- Encore Capital Group (NASDAQ:ECPG), an international specialty finance company, today announced that it has completed the previously announced sale of its wholly owned subsidiary Propel Financial Services to Prophet Capital Asset Management, an Austin, Texas-based Registered Investment Adviser. The transaction generated more than $150 million in after-tax proceeds for Encore.
Encore has a broadening array of opportunities within its global footprint. As such, this transaction provides significant benefits to Encore, including improving the overall corporate-invested capital returns, reducing debt, providing liquidity, and allowing a greater focus on expanding market leadership in debt-buying and servicing in the U.S. and around the world.
Encore and Prophet announced the agreement on Feb. 24, 2016.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions for consumers across a broad range of assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com. More information about the Company's Cabot Credit Management subsidiary can be found at http://www.cabotcm.com. Information found on the company’s or Cabot’s website is not incorporated by reference.
Contact:
Katie Lilley (Encore)
P: 703-722-3061
M: 202-253-5026
katielilley@hillenby.com
Encore Capital Group, Inc
