PRA Group Announces Pricing of $300.0 Million of 7.375% Senior Notes due 2025

Rhea-AI Summary

PRA Group, Inc. (Nasdaq: PRAA) has priced $300 million of 7.375% Senior Notes due 2025. The offering, which is set to close around August 27, 2020, is exempt from Securities Act registration requirements. The proceeds will primarily be used to repay $295 million of existing revolving borrowings. The notes will be guaranteed by PRA Group's domestic subsidiaries involved in its North American Credit Agreement. This transaction aims to optimize PRA Group's debt structure while maintaining funding flexibility.

Positive

• Pricing of $300 million Senior Notes improves debt structure.
• Proceeds will repay $295 million of revolving borrowings, enhancing financial stability.

Negative

• New senior notes may increase overall debt leverage.
• Interest payments on notes could impact cash flow.

NORFOLK, Va., Aug. 13, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today the pricing of its previously announced offering of $300.0 million aggregate principal amount of 7.375% Senior Notes due 2025 (the "notes") in a private transaction that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The offering of the notes is expected to close on or about August 27, 2020, subject to the satisfaction of customary closing conditions.

The notes will be guaranteed on a senior unsecured basis by each of PRA Group's existing and future domestic subsidiaries that is a borrower or guarantor under PRA Group's North American Credit Agreement.

PRA Group intends to use the net proceeds from the offering of the notes to repay approximately $295.0 million of outstanding revolving borrowings under its North American Credit Agreement (but such prepayment will not reduce the revolving borrowing commitment amount, and the prepaid amount will be available for re-borrowing subject to customary conditions).

The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain persons outside of the United States pursuant to Regulation S under the Securities Act.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of these securities will be made only by means of a private offering memorandum. The offer and sale of the notes have not been and will not be registered under the Securities Act or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

About PRA Group, Inc.

As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt.

About Forward-Looking Statements

Statements made herein which are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that our expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including, but not limited to, PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by future information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

Investor Contact:
Darby Schoenfeld, CPA
Vice President, Investor Relations
(757) 431-7913
Darby.Schoenfeld@PRAGroup.com

View original content:http://www.prnewswire.com/news-releases/pra-group-announces-pricing-of-300-0-million-of-7-375-senior-notes-due-2025--301112243.html

SOURCE PRA Group, Inc.

FAQ

What is the purpose of PRA Group's $300 million Senior Notes offering?

PRA Group intends to use the proceeds to repay approximately $295 million of outstanding revolving borrowings.

When will the PRAA Senior Notes offering close?

The offering is expected to close on or about August 27, 2020, subject to customary closing conditions.

What interest rate is associated with PRAA's Senior Notes?

The Senior Notes have been priced at an interest rate of 7.375%.

What will guarantee the Senior Notes issued by PRA Group?

The notes will be guaranteed on a senior unsecured basis by domestic subsidiaries of PRA Group.

What are the risks associated with PRA Group's new Senior Notes?

The new notes may increase overall debt leverage and the interest payments could impact the cash flow of PRA Group.