PRA Group Announces Pricing of Offering of $400M of 8.875% Senior Notes due 2030
Portfolio Pulse from Benzinga Newsdesk
PRA Group, Inc. (NASDAQ:PRAA) announced the pricing of $400 million of 8.875% Senior Notes due 2030. The proceeds will be used to repay $396 million of outstanding borrowings under its North American revolving credit facility and to redeem $298 million of 7.375% Senior Notes due 2025.
May 16, 2024 | 11:45 am
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PRA Group announced the pricing of $400 million of 8.875% Senior Notes due 2030. The proceeds will be used to repay $396 million of outstanding borrowings and to redeem $298 million of 7.375% Senior Notes due 2025.
The issuance of new senior notes at a higher interest rate but longer maturity will improve PRA Group's liquidity in the short term by repaying existing borrowings and redeeming older notes. This could be seen positively by investors as it demonstrates proactive debt management.
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