PRA Group, Inc. Completes $150 Million Additional Notes Offering

On November 25, 2024, PRA Group, Inc. (NASDAQ:PRAA) successfully finalized its offering of $150.0 million aggregate principal amount of 8.875% Senior Notes due 2030. The private transaction, exempt from the registration requirements of the Securities Act of 1933, saw the Additional Notes priced at 103.625% of their principal amount. These Additional Notes are an extension of the company’s existing 8.875% Senior Notes due 2030 and were released under an Indenture dated May 20, 2024.

Interest on the Notes will accrue at a rate of 8.875% per annum, with payments scheduled semiannually in arrears on January 31 and July 31 each year, starting from January 31, 2025. The maturity date for the Notes is January 31, 2030, subject to early repurchase or redemption.

The Notes and Guarantees are unsecured, senior obligations of both the company and the Guarantors, ranking equally with their respective unsecured senior indebtedness and senior to future senior subordinated debts. They will be effectively subordinated to various existing and future secured indebtedness.

Moreover, the company has the option to redeem the Notes in whole or part before June 1, 2026, or after that date at varying prices. Additionally, under certain Change of Control events, the company is required to offer to repurchase all Notes, unless already redeemed.

The net proceeds from this offering are intended to repay around $154.3 million of borrowings under the company’s North American revolving credit facility. It is worth noting that the Notes have not been registered under the Securities Act and may only be transacted under certain exemptions.

Some initial purchasers, the Trustee, and affiliates have provided, and may continue to provide, commercial banking, financial advisory, and investment banking services. Regions Securities LLC, one of the initial purchasers, also serves as the trustee under the indentures governing the existing notes.

For further details, the complete Indenture was previously filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K on May 20, 2024.

This article is for educational purposes only and investors are advised to conduct further research before making financial decisions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read PRA Group’s 8K filing here.

PRA Group Company Profile

PRA Group, Inc, a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies.