By Paul A. Harris
Portland, Ore., Jan. 23 – PRA Group, Inc. priced an upsized $400 million issue of five-year senior notes (Ba2//BB+) at par to yield 8 3/8% on Monday, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 8½% area. Initial guidance was in the high-8% area.
Timing was accelerated. When the deal was announced on Monday morning it was scheduled to remain in the market until Tuesday.
The deal was heard to be playing to $1.4 billion of orders, according to a sellside source.
BofA Securities Inc. and Truist Securities Inc. were the lead bookrunners. Joint bookrunners were Capital One Securities Inc., Citizens Capital Markets Inc., DNB Markets Inc., Fifth Third Securities Inc., ING Financial Markets LLC and MUFG Securities Americas Inc.
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. The incremental proceeds resulting from the $50 million upsizing of the deal will be used to repay debt under the revolving credit facility.
| Issuer: | PRA Group, Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 1, 2028
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| Lead bookrunners: | BofA Securities Inc. and Truist Securities Inc.
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| Joint 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.
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 474 bps
|
| First call: | Feb. 1, 2025 at 104.188
|
| Trade date: | Jan. 23
|
| Settlement date: | Feb. 6
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| Ratings: | Moody's: Ba2
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area
|
| Marketing: | Drive-by
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