Exhibit 99.1
PRA Group Announces Pricing of Upsized Offering of $400.0 Million of 8.375% Senior Notes due 2028
NORFOLK, Va., January 24, 2023 - PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today the pricing on January 23, 2023 of its offering of $400.0 million aggregate principal amount of 8.375% Senior Notes due 2028 (the “notes”), which was upsized by $50.0 million from the previously announced $350.0 million, in a private transaction that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The offering of the notes is expected to close on or about February 6, 2023, subject to the satisfaction of customary closing conditions.
The notes will be guaranteed on a senior unsecured basis by each of PRA Group’s existing and future domestic subsidiaries that is a borrower or guarantor under PRA Group’s North American Credit Agreement.
PRA Group will deposit $345.0 million of the net proceeds from the offering into a segregated account and use such proceeds to retire all or any portion of its 3.50% convertible senior notes due 2023 (the “2023 convertible notes”) or to satisfy any other obligations with respect to the 2023 convertible notes. Upon any retirement of the 2023 convertible notes by other means and subject to certain conditions, PRA Group may use such deposited amounts for other purposes not prohibited by the indenture governing the notes. PRA Group will use the remainder of the net proceeds to repay approximately $51.0 million aggregate principal amount of outstanding revolving borrowings under its North American Credit Agreement (but such prepayment will not reduce the revolving borrowing commitment amount, and the prepaid amount will be available for re-borrowing subject to customary conditions).
The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain persons outside of the United States pursuant to Regulation S under the Securities Act.
This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of these securities will be made only by means of a private offering memorandum. The offer and sale of the notes have not been and will not be registered under the Securities Act or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.
About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt.
