Portfolio Recovery Associates Inc., a Norfolk, Va.-based debt buyer and accounts receivable management company, Monday announced an expansion of its credit facility to $407.5 million from $365 million.
The credit facility includes a $357.5 million revolving credit facility maturing on Dec. 20, 2014 and a $50 million fixed rate term loan maturing on May 4, 2012. Upon maturity of the fixed rate loan, the revolving facility automatically will be increased by the $50 million.
The new credit facility replaces the existing credit facility, the revolver portion of which was scheduled to expire in May 2011. The company entered into the new, four-year credit agreement effective Dec. 20, with Bank of America, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, Sun Trust Bank, as documentation agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities LLC, as joint lead arrangers and joint book managers.
“We’re excited to have entered into this new credit agreement with a solid mix of banks, some of which have worked with us for years and others that are new to the PRA story,” says Kevin P. Stevenson, chief financial and administrative officer. “Our plan is to utilize our future cash flows from our past portfolio and business investments, along with this new credit facility in support of our business expansion plans in 2011 and beyond.” Last month, the company reported net income of $18.5 million for the quarter ended September 30, an 83% increase from $10.1 million in the same period a year earlier. Two weeks ago, the company reached a 52-week stock high.
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