Portfolio Recovery expands facility to $843 million, adds commitments

By Susanna Moon

Chicago, April 7 - Portfolio Recovery Associates, Inc. obtained commitments for another $214.5 million under its revolving credit facility, bringing the total facility size to $842.5 million.

The facility now consists of a fully funded $192.5 million term loan, a $630 million domestic revolving credit facility, of which $630 million may be drawn, and a $20 million multi-currency revolving credit facility, of which $20 million may be drawn, all of which mature on Dec. 19, 2017.

The company amended its credit agreement April 1 with BofA Merrill Lynch, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc. as the joint lead arrangers and joint book managers, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer; Wells Fargo Bank, NA and SunTrust Bank are the co-syndication agents; and KeyBank, NA is the documentation agent.

"PRA continues to prepare to finance our acquisition of Aktiv Kapital with some combination of cash, seller financing and funds from our credit facility," Kevin Stevenson, chief financial and administrative officer, treasurer and assistant secretary, said in a company press release.

"We believe we have made good progress in completing a number of customary and regulatory closing conditions, and we believe we are on track toward closing on the acquisition this quarter."

In February, the company agreed to acquire Aktiv Kapital AS, a Norway-based company specializing in the acquisition and servicing of non-performing consumer loans throughout Europe and in Canada for about $880 million.

The company also agreed to assume about $435 million of Aktiv Kapital's corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion.

Portfolio Recovery is a Norfolk, Va.-based financial and business services company operating in the United States and the United Kingdom.

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