Portfolio Recovery gets $600 million five-year facility led by Merrill

By Susanna Moon

Chicago, Dec. 20 - Portfolio Recovery Associates, Inc. said it refinanced its loans with a $600 million five-year credit facility led by Bank of America Merrill Lynch.

Interest will be Libor plus 250 basis points.

Proceeds will be used to fund business operations and expansion.

The facility contains an accordion feature that allows the company to request an increase of up to $250 million, according to a company press release.

Wells Fargo Securities and SunTrust Bank also are lenders.

"This new credit facility expands our capacity to invest while lowering our funding costs. We remain focused, however, on keeping debt levels low," Kevin Stevenson, executive vice president, chief financial and administrative officer, treasurer and assistant secretary, said in the release.

"Every [company] 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," Stevenson said.

The company is a Norfolk, Va.-based provider of outsourced receivables management and related services.

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