Debt buyer Portfolio Recovery Associates announced Monday it expanded its credit facility to prepare for the acquisition of Aktiv Kapital, which is one of the largest deals in accounts receivable management industry history.
The Norfolk, Va.-based company operates in the U.S., Canada and the UK. It increased the company's domestic revolving credit commitments by $214.5 million - from $628 million to $842.5 million - after modifying its credit agreement of December 2012.
"PRA continues to prepare to finance our acquisition of Aktiv Kapital with some combination of cash, seller financing and funds from our credit facility. We believe we have made good progress in completing a number of customary and regulatory closing conditions, and we believe we are on track toward closing on the acquisition this quarter," said Kevin Stevenson, PRA's chief financial and administrative officer, treasurer and assistant secretary.
PRA in February
PRA agreed to assume approximately $435 million of Aktiv Kapital's corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion. The two companies combined will become one of the world's largest acquirers of consumer debt from banks and other creditors with more than $4.6 billion in estimated remaining collections from customers.
In 2013 and 2012, PRA was ranked among Fortune's 100 Fastest-Growing Companies and Forbes' Top 25 Best Small Companies in America.
Earlier in February, PRA
