By Abigail W. Adams
Portland, Me., Sept. 17 – PRA Group, Inc. priced an upsized $350 million of eight-year senior notes (Ba2//BB+) on Friday at par to yield 5%, according to market sources.
Pricing came at the tight end of talk for a yield in the 5 1/8% area. Initial guidance was in the low-5% area.
The initial size of the offering was $300 million.
Truist Securities Inc. was the left bookrunner.
BofA Securities Inc., Capital One Securities Inc., DNB Markets Inc., Fifth Third Securities Inc. and MUFG were joint bookrunners for the Rule 144A and Regulation S for life offering.
The notes are non-callable for three years.
There is an equity clawback of up to 40% at 105 until Oct. 1, 2024 and a poison put of 101.
Net proceeds are expected to be $345.5 million. Proceeds will be used to repay borrowings under the company’s North American revolver.
PRA Group is a Norfolk, Va.-based debt collector.
| Issuer: | PRA Group, Inc.
|
| Amount: | $350 million
|
| Maturity: | Oct. 1, 2029
|
| Securities: | Senior notes
|
| Left bookrunner: | Truist Securities Inc.
|
| Joint bookrunners: | BofA Securities Inc., Capital One Securities Inc., DNB Markets Inc., Fifth Third Securities Inc. and MUFG
|
| Co-managers: | Citizens Capital Markets Inc. and Regions Securities LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Call protection: | Three years
|
| Equity clawback: | For up to 40% at 105 until Oct. 1, 2024
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 22
|
| Ratings: | Moody's: Ba2
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Low 5% area
|
| Marketing: | Investor conference call
|
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