PRA Group to price $300 million five-year senior notes on Thursday; initial talk high 7% area

By Paul A. Harris

Portland, Ore., Aug. 11 – PRA Group, Inc. plans to price a $300 million offering of five-year senior notes (expected ratings Ba2/BB+) on Thursday, according to market sources.

The deal was scheduled to be shopped on an investor conference call beginning at 12:30 p.m. ET on Tuesday.

Initial talk has the Rule 144A for life notes coming to yield in the high 7% area, a trader said.

BofA Securities Inc. is the left bookrunner. Truist Securities Inc., Fifth Third Securities Inc., DNB, MUFG and Capital One Securities Inc. are the joint bookrunners.

Citizens Capital Markets Inc. and Regions Securities LLC are the co-managers.

The notes become callable after two years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Norfolk, Va.-based company, which acquires and collects on nonperforming loans, plans to use the proceeds to repay debt under its North American revolving credit facility.

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