PRA restates facility to lift commitments and amend pricing, covenants

By Marisa Wong

Morgantown, W.Va., Sept. 9 – PRA Group, Inc. entered into a third amendment and restatement agreement to its multicurrency revolving credit agreement originally dated Oct. 23, 2014 to increase total commitments to $1.2 billion from $900 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, completed on Sept. 2, also modifies terms of the credit facility to replace the estimated remaining collections ratio covenant with a loan-to-value (LTV) covenant of 75%.

The company revised the applicable margin to 280 basis points to 390 bps for interest payable under the revolver and to 425 bps to 450 bps for interest under the term loan, depending on the LTV ratio.

In addition, the company updated the ratio of gross interest bearing debt to EBITDA to 3.5 to 1.0 until March 31, 2017 and 3.25 to 1.0 after that.

Additional funds advanced under the third amendment will be used primarily for general corporate purposes, including financing portfolio acquisitions, the filing noted.

DNB Bank ASA, Nordea Bank Norge ASA and Swedbank AB are the bookrunners.

PRA Group is a debt buyer based in Norfolk, Va.

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