Business Context and Reporting Period
Company: Portfolio Recovery Associates, Inc. (PRA Group Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: September 3, 2008
Event: Entry into a Material Definitive Agreement (Fourth Amended and Restated Loan and Security Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It focuses exclusively on a change in credit facility terms.
| Metric | Previous Value | New Value |
|---|---|---|
| Line of Credit Availability | $340,000,000 | $365,000,000 |
| Incremental Increase | $25,000,000 |
Material Changes
- Credit Facility Expansion: The Company increased its revolving line of credit by $25 million.
- New Lender: JP Morgan Chase Bank, N.A. was added as a lender to the facility.
- Existing Lenders: Bank of America, N.A., Wachovia Bank National Association, SunTrust Bank, and RBC Centura Bank remain parties to the agreement.
- Terms: Aside from the increased availability and the addition of the new lender, the terms of the agreement were not materially altered.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, outlook, or discussion of risks and contingencies. The document serves solely to disclose the execution of the amended loan agreement.
Investor Verification Checklist
- Verify the full text of the Fourth Amendment (Exhibit 10.1) for specific covenants, interest rates, and maturity dates not detailed in the summary.
- Confirm the utilization rate of the new $365 million facility in subsequent quarterly reports (10-Q/10-K).
- Monitor the creditworthiness of the new lender (JP Morgan Chase) and existing lenders in the context of the 2008 financial environment.