PRA Group refinances European facility with €730 million revolver

By William Gullotti

Buffalo, N.Y., Nov. 28 – PRA Group Europe Holding Sarl, a wholly owned subsidiary of PRA Group Inc., refinanced its $750 million European revolving credit facility with a new €730 million revolver on Nov. 23, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver, maturing Nov. 23, 2027, features an uncommitted accordion feature for up to €500 million, subject to a borrowing base and certain conditions.

It is secured by a first perfected security interest in all of the equity interests in certain operating subsidiaries of the borrowers, certain intercompany loans and certain shareholder loans extended by the parent company to the borrowers.

Borrowings will be available in euros, Norwegian krone, Danish krone, Swedish krona and Polish zloty and bear interest at the appropriate benchmark rate for the currency plus an applicable margin based on the ERC ratio.

The revolver is subject to financial covenants that require the company maintain a consolidated total leverage ratio not to exceed 3.50 to 1.0, a consolidated senior secured leverage ratio not to exceed 2.25 to 1.0 and a positive consolidated income from operations. In each case, the covenant applies at the end of any fiscal quarter.

Facility proceeds may be used to refinance certain debt, to finance approved loan portfolios and for other general corporate purposes.

At closing, the full balance of outstanding principal and interest of the refinanced facility was transferred to the new revolver. The previous facility was terminated after the transfer.

Specific details regarding outstanding balance and applicable margins were not disclosed in the filing.

DNB Bank ASA is acting as both facility agent and security agent.

PRA is a Norfolk, Va.-based financial and business services company.

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