PRA Group to sell $350 million five-year senior notes on Tuesday; initial talk high-8% area

By Paul A. Harris

Portland, Ore., Jan. 23 – PRA Group, Inc. plans to price a $350 million offering of five-year senior notes (expected ratings Ba2/BB+) on Tuesday, according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial guidance in the high-8% area, according to a sellside source.

BofA Securities Inc. and Truist Securities Inc. are the lead bookrunners. Capital One Securities Inc., Citizens Capital Markets Inc., DNB Markets Inc., Fifth Third Securities Inc., ING Financial Markets LLC and MUFG Securities Americas Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Norfolk, Va.-based debt collector plans to use the proceeds to redeem, repurchase, repay and/or tender for all or any of its $345 million outstanding 3½% convertible senior notes due 2023.

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