Portfolio Recovery Associates (PRA) announced the close of a $600 million credit facility to fund business operations and expansion.
PRA said Bank of America Merrill Lynch led arrangements for the facility with Wells Fargo Securities and SunTrust Bank.
The five-year facility contains an accordion feature that allows the company to request an increase of up to $250 million in borrowing availability.
The facility replaces PRA’s prior facility and allows for borrowing rate alternatives similar to the prior facility. However, the company expects to primarily utilize LIBOR-based loans which incur a spread of 250 basis points.
“This new credit facility expands our capacity to invest while lowering our funding costs. We remain focused, however, on keeping debt levels low. Every PRA investment, whether in a portfolio, business or new product offering here in the U.S. or globally, will continue to be carefully assessed to achieve appropriate, long-term returns,” said Kevin Stevenson, PRA’s executive vice president, chief financial and administrative officer, treasurer and assistant secretary.
PRA is a financial and business services company.