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PRA Group gets restated $450 million term loan, $755 million revolvers
By Angela McDaniels
Tacoma, Wash., May 8 – PRA Group, Inc. entered into a five-year secured amended and restated credit agreement on Friday that provides for a $450 million term loan, a $705 million domestic revolving loan facility and a $50 million Canadian revolving loan facility, according to an 8-K filing with the Securities and Exchange Commission.
PRA Group Canada Inc. is also a borrower under the facility.
The interest rate is Libor plus 250 basis points.
The credit facility has a $45 million accordion feature.
“We are focused on having adequate capital for investment during a time when the supply of charge-offs appears to be increasing in the United States. This new five-year facility addresses current-year maturities and gives us $420 million of capacity for investment," Pete Graham, executive vice president and chief financial officer, said in a company news release.
Bank of America, NA, is the administrative agent. Capital One, NA, Fifth Third Bank and SunTrust Bank are the co-syndication agents. DNB Capital, ING Capital, MUFG Union Bank, NA and Regions Bank are the senior managing agents.
The obligations under the credit agreement are secured by substantially all the assets of PRA Group, its domestic subsidiaries and PRA Group Canada.
Availability under the revolver is based on a separate borrowing base calculation for each facility comprised of: (a) 35% of estimated remaining collections of domestic or Canadian, as applicable, eligible asset pools; plus (b) 55% of estimated remaining collections of domestic or Canadian, as applicable, insolvency eligible asset pools; plus (c) 75% of domestic or Canadian, as applicable, eligible accounts.
The credit agreement amends and restates the company’s secured credit agreement dated Dec. 19, 2012.
PRA Group is a debt buyer based in Norfolk, Va.
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