NORFOLK, Va. - PRA Group, Inc. (NASDAQ:PRAA), a company specializing in the acquisition and collection of nonperforming loans, announced today its intention to offer $400 million in senior notes due in 2030 through a private transaction. These notes are to be guaranteed by the company's domestic subsidiaries that are already part of its North American Credit Agreement.
The offering is aimed at qualified institutional buyers under Rule 144A of the Securities Act, and certain non-U.S. persons in accordance with Regulation S. The proceeds from the sale of the notes are designated for the repayment of approximately $396 million of PRA Group's outstanding borrowings under its North American revolving credit facility. Additionally, the company plans to redeem its $298 million of 7.375% Senior Notes due in 2025 on or around September 1, 2024, and to pay any accrued and unpaid interest.
This announcement is not an offer to sell or a solicitation to buy any securities, nor shall there be any sales in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The notes have not been registered under the Securities Act or any state securities laws, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements.
PRA Group operates globally, returning capital to financial institutions and extending credit services to consumers in the Americas, Europe, and Australia. The company's forward-looking statements indicate management's current expectations for future operations and financial performance, subject to risks and uncertainties that could cause actual results to differ.
The information provided is based on a press release statement and is subject to change. PRA Group does not undertake any obligation to publicly update or revise its forward-looking statements.
InvestingPro Insights
PRA Group, Inc. (NASDAQ:PRAA) has recently made headlines with its strategic financial maneuvers, including the offering of senior notes and the planned redemption of existing debt. Investors following the company's progress might be interested in some key metrics and insights from InvestingPro that could shed light on PRA Group's financial health and future prospects.
An InvestingPro Tip indicates that analysts are optimistic about PRA Group's profitability, with net income expected to grow this year. This aligns with the company's proactive approach to managing its debt profile. Additionally, the company's liquid assets surpass its short-term obligations, which suggests a strong liquidity position that could support its strategic financial activities.
From a data perspective, PRA Group's market cap stands at approximately $1 billion USD, reflecting the size and scale of the organization within its sector. While the company's P/E ratio over the last twelve months as of Q1 2024 is negative at -46.94, indicating past challenges in profitability, the adjusted P/E ratio for the same period shows a more favorable future outlook at 11.88. Moreover, the company has experienced a significant price uptick over the last six months, with a total return of 40.89%, signaling a robust performance in the stock market that investors may find encouraging.
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