PRA Group Ups Domestic Revolving Credit Facility to $725M

Leading financial services company PRA Group, Inc. PRAA recently raised its domestic revolving credit commitments by $125 million to $725 million.

The increase in credit facility is expected to strengthen the company's financial base and help it undertake strategic investments. The expansion should boost the company's financial flexibility, as it is associated with capital deployment.

PRA Group has amended its credit facility time and again to strengthen its financial position, so as to suitably capitalize on forthcoming growth opportunities. On Aug 3, 2015, the company had acquired 55% interest in RCB Investimentos S.A., which was paid with approximately $55.2 million in cash borrowed under the existing domestic revolving credit facility.

Prior to this, the aggregate credit facility, with a principal amount of $823.8 million, comprised a fully funded term loan, a domestic revolving credit facility and a Canadian revolving credit facility. The term loan was worth $173.8 million, while the domestic revolving credit facility amounted to $600 million, of which $138.8 million is available for withdrawal. The Canadian revolving credit facility is worth $50 million, of which $32.9 million can be withdrawn.  All three components of the credit facility under the credit agreement are expected to mature on Dec 19, 2017.

PRA Group currently carries a Zacks Rank #5 (Strong Sell). Better-ranked players in the financial services industry include General Finance Corporation GFN, Financial Engines, Inc. FNGN and Houlihan Lokey, Inc. HLI. While General Finance sports a Zacks Rank #1 (Strong Buy), both Financial Engines and Houlihan Loukey hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>