PRA Closes $287.5 Million Offering of Convertible Senior Notes due 2020

Portfolio Recovery Associates, Inc. (PRA) PRAA, a business and financial services company operating in the U.S. and U.K., announced the August 13, 2013 closing of its previously announced offering of $250 million aggregate principal amount of 3.00% convertible senior notes due 2020 (the "notes") in a private placement to qualified, institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act"). In addition, PRA announced that the initial purchasers fully exercised their option to purchase an additional $37.5 million in aggregate principal amount of the notes. The net proceeds from the sale of the notes, including proceeds resulting from the exercise of the initial purchasers' option to purchase an additional $37.5 million in aggregate principal amount of the notes, are approximately $279.0 million, after deducting the initial purchasers' discounts and estimated offering expenses. The notes are senior unsecured obligations of PRA and pay interest semiannually at a rate of 3.00%. The notes mature on August 1, 2020, unless converted in accordance with their terms prior to such date. Prior to February 1, 2020, the notes are convertible only upon the occurrence of specified events; thereafter, until maturity, the notes are convertible at any time. The conversion rate for the notes is initially 15.2172 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $65.72 per share of common stock, and is subject to adjustment in certain circumstances. The initial conversion price represents a premium of approximately 30% to the $50.55 per share closing price of PRA's common stock on August 7, 2013, the date on which PRA entered into the agreement with the initial purchasers regarding the purchase of the notes. Upon conversion, the notes may be settled in cash, shares of PRA's common stock or any combination thereof. PRA does not have the right to redeem the notes prior to maturity. The notes and the shares of common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws. This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of these securities will be made only by means of a private offering memorandum. About PRA As a leader in the U.S. debt buying industry, Portfolio Recovery Associates, Inc. PRAA returns capital to banks and other creditors that helps expand financial services for consumers. PRA collaborates with its customers to create affordable, realistic debt repayment plans. The company also provides a broad range of fee-based services to local governments and law enforcement, U.S. businesses, institutional investors, global hedge funds, and U.K. banks and creditors. PRA has been annually ranked as one of Forbes' 100 Best Small Companies in America since 2007, advancing to the Top 25 in 2012. The company also was recognized last year as one of Fortune's 100 Fastest-Growing Companies in the U.S. For more information, visit www.PortfolioRecovery.com.