Debt-buying giant Portfolio Recovery Associates Inc. on Thursday announced the close of a $600 million credit facility to fund business operations and expansion.
The five-year facility also contains an accordion feature that allows the Norfolk, Va.-based company to request an increase of up to $250 million in borrowing availability.
"This new credit facility expands our capacity to invest while lowering our funding costs. We remain focused, however, on keeping debt levels low," said Kevin Stevenson, executive vice president, chief financial and administrative officer, treasurer and assistant secretary. "Every PRA investment, whether in a portfolio, business or new product offering here in the U.S. or globally, will continue to be carefully assessed to achieve appropriate, long-term returns."
Bank of America Merrill Lynch led arrangements for the facility with Wells Fargo Securities and SunTrust Bank. The company expects to mostly utilize LIBOR-based loans, which incur a spread of 250 basis points.
PRA in November reported
