Press release
PRA Group Announces Amendment to North American Credit Facility
NORFOLK, Va., May 6, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today
About this update from Pra Group, Inc.
[{"type":"text","content":"NORFOLK, Va., May 6, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today that on May 6, 2020, it amended its North American credit facility. The amendment includes the following changes, among other items:\nThe consolidated total leverage ratio limit will increase to 3.25 from 2.75 effective after June 30, 2020 and through December 31, 2020. After December 31, 2020, the consolidated total leverage ratio limit will decrease to 3.0 until maturity. The LIBOR floor increases from zero to 1.00% on the revolving loans. The consolidated senior secured leverage ratio limit will increase from 2.25 to 2.75 until March 31, 2021. After March 31, 2021, the senior secured leverage ratio will decrease to 2.25 until maturity. The estimated remaining collections (ERC) borrowing base on all domestic Core eligible pools will increase from 35% to 40% effective July 31, 2020 until January 31, 2021. If the ERC advance rate drops to 35% or below during this period, the ERC borrowing base will return to 35%.\"We appreciate the continued support and commitment of our banking partners in both the United States and Europe. This amendment brings some of our covenants in line with others in the industry while providing some short term flexibility that, when combined with the recent increase to our European credit facility, gives us the capability to manage our maturing convertible notes with cash on hand and committed credit lines, should that be our decision,\" said Pete Graham, executive vice president and chief financial officer for PRA Group.\nAbout PRA GroupAs a global leader in acquiring and collecting nonperforming loans, PRA Group returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With thousands of employees worldwide, PRA Group companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com. \nAbout Forward-Looking StatementsStatements made herein which are not historical in nature, including PRA Group's or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Se...