Daily News: August 22, 2013

PRA Expands Credit Facility to $633 Million

Portfolio Recovery Associates said it modified its credit agreement of December 19, 2012, as amended, by increasing its lenders’ domestic revolving credit commitments by $35.5 million, increasing its aggregate credit facility from $597.5 million to $633 million.

According to a related 8-K filing, Bank of America served as administrative agent, swing line lender and L/C issuer. Wells Fargo and SunTrust Bank served as co-syndication agents. The filing also noted that KeyBank served as documentation agent, and Merrill Lynch, Wells Fargo Securities and SunTrust Robinson Humphrey served as joint lead arrangers and joint book managers.

Three Virginia-based banks — Bank of Hampton Roads, Heritage Bank and Union First Market — were added as new lenders, while three other banks in the facility adjusted their credit commitments. After the $35.5 million increase in the amount of revolving credit availability pursuant to the announced modifications, the total credit facility now includes an aggregate principal amount available of $633 million, which consists of a fully funded $197.5 million term loan, a $415.5 million domestic revolving credit facility, of which $415.5 million is available to be drawn, and a $20 million multi-currency revolving credit facility, of which $20 million is available to be drawn, all of which mature on December 19, 2017.

“Our expanded credit facility coupled with our recently completed $287.5 million convertible debt offering puts PRA in a strong position to accomplish its growth objectives,” said Kevin Stevenson, executive vice president, chief financial and administrative officer, treasurer and assistant secretary, PRA.

Portfolio Recovery Associates, a financial and business services company, serves in the U.S. consumer debt buying industry.