Encore Capital Group, a debt management and recovery solutions provider, closed a five-year, $575 million credit facility.

SunTrust Robinson Humphrey acted as syndication agent and administrative agent, as well as a lender under the new agreement. Bank of America Merrill Lynch acted as syndication agent, as well as a lender. The facility also includes Morgan Stanley, Deutsche Bank, Fifth Third Bank and ING Capital, among other lenders.

“Especially in this challenging credit environment, we are pleased to increase and extend our facility with additional flexibility that will help us drive towards our growth goals,” Paul Grinberg, EVP and CFO said. “Looking at the industry landscape, we believe that the companies that will thrive will be those with a differentiated operating platform and the lowest cost of capital. This facility demonstrates the strength and leadership of our financial capabilities and positions us well for the industry consolidation we anticipate to take place as a result of the regulatory environment.”

The facility consists of a five-year, $425 million revolving credit facility and $100 million term note, each maturing in November 2017 and a three-year, $50 million term note, maturing in November 2015. The facility contains an accordion feature, which allows the company to request an increase in the facility by up to $200 million. The facility amends the company’s pre-existing $555.5 million revolving credit agreement that was scheduled to expire in December 2013.

Borrowings under the facility bear interest at either LIBOR, plus a spread that ranges from 250 to 300 basis points for the five-year tranches and 200 to 250 basis points for the three-year tranche, depending on the company’s leverage, or an alternate base rate, which can be based on, among several choices, the prime rate plus a spread that ranges from 150 to 200 basis points for the five-year tranches and 100 to 150 basis points for the three-year tranche. The facility also modifies certain provisions of the company’s existing credit facility that allows the company to continue to expand its business operations.