Business Context and Reporting Period
Company: Portfolio Recovery Associates, Inc. (PRA Group Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: August 21, 2013
Event: Entry into a Material Definitive Agreement modifying the Company's existing Credit Agreement dated December 19, 2012.
Key Financial Metrics
This filing reports on debt facility modifications rather than operating performance. No revenue, profit, cash flow, or margin data is provided in this document.
| Metric | Value |
|---|---|
| Total Credit Facility Principal Amount | $633.0 million |
| Term Loan (Fully Funded) | $197.5 million |
| Domestic Revolving Credit Facility | $415.5 million (Available to be drawn) |
| Multi-Currency Revolving Credit Facility | $20.0 million (Available to be drawn) |
| Facility Maturity Date | December 19, 2017 |
Material Changes Versus Prior Period
- Increased Availability: Revolving credit availability increased by $35.5 million.
- New Lenders: Bank of Hampton Roads, Heritage Bank, and Union First Market were added to the Credit Agreement.
- Commitment Adjustments: Revolving credit commitments for Capital One, N.A. and Xenith Bank were increased; commitments and loans for Bank of America, N.A. were decreased.
Guidance, Outlook, and Risks
Management Commentary: The filing details the execution of Loan Modification Agreements to expand liquidity and adjust lender participation. No forward-looking guidance on revenue or earnings is included in this specific report.
Risks and Contingencies: The filing notes that the description of the Loan Modification Agreements is not complete and is qualified by the full text of the documents. The primary financial obligation is the repayment of the $633.0 million facility maturing in 2017.
Important Facts for Investor Verification
- Verify the specific terms and covenants of the modified Credit Agreement in the full legal documents referenced in the filing.
- Confirm the current drawdown status of the $435.5 million total revolving credit facilities ($415.5M domestic + $20M multi-currency).
- Review the impact of the $35.5 million increase in availability on the company's liquidity position relative to its operating cash flow needs.
- Check subsequent filings for any further amendments to the lender composition or facility terms.