Debt Buyer Boosts Credit Facility to $633M

Debt buyer Portfolio Recovery Associates (PRA) Inc., based in Norfolk, Va., announced Wednesday it had modified its credit agreement of December 19, 2012, and increased its lenders' domestic revolving credit commitments by $35.5 million, increasing its aggregate credit facility from $597.5 million to $633 million.

Three Virginia-based banks - Bank of Hampton Roads, Heritage Bank and Union First Market - were added as new lenders, while three other banks in the facility adjusted their credit commitments.

"Our expanded credit facility coupled with our recently completed $287.5 million convertible debt offering puts PRA in a strong position to accomplish its growth objectives," said Kevin Stevenson, the company's executive vice president, chief financial and administrative officer, treasurer and assistant secretary.

Earlier this month, PRA reported jumps in all key financial categories.

Total revenues reached $183 million, a 24% increase from the year-ago period. Net income totaled $43.6 million, up 36%, and cash collections reached $296 million, up 28% from a year ago.

In June, the company reported that its board approved a three-for-one-stock split by way of a dividend. The split is the first stock split in this manner since the company's initial public offering in 2002.