Portfolio Recovery Associates Inc., a publicly owned debt buyer based in Norfolk, Va., announced Monday the closing of a $75.5 million public stock offering.
The offering of 1.25 million shares was priced at $52.50 per share. Underwriters exercised an option to purchase an extra 187,500 shares to cover over-allotments.
Company officials said the net proceeds were $71.6 million after expense. The company plans to use the money to repay a portion of the debt outstanding under its $365 million revolving credit facility.
That will enable the company to draw down the line of credit available for portfolio and business acquisitions and for general corporate purposes, the company reported.
Earlier this month, the company reported cash collections in the fourth quarter ended Dec. 31 rose 20% to a record $95.3 million, up from $79.2 million in the year-ago period,
