PRA Group, Inc. has completed the issuance of $400 million in aggregate principal amount of 8.500% Senior Notes due 2033. The notes were issued on October 2, 2026, in a private transaction exempt from registration requirements under the Securities Act of 1933.
According to the filing, the notes were issued pursuant to an Indenture dated October 2, 2026, among PRA Group, its domestic subsidiaries, and Regions Bank as trustee. Interest on the notes accrues at a rate of 8.500% per annum and is payable semiannually on April 15 and October 15 of each year, beginning April 15, 2027. The notes are set to mature on October 15, 2033, subject to earlier repurchase or redemption.
The notes are guaranteed on a senior unsecured basis by all of the Company’s existing and future domestic Restricted Subsidiaries that guarantee the Company’s Amended and Restated Credit Agreement. The Indenture includes provisions allowing the Company to redeem the notes prior to maturity under specific conditions, including a provision that permits the redemption of up to 40% of the principal amount with proceeds from a public offering of common stock prior to October 15, 2029.
The Company intends to use the net proceeds from this offering and available cash to repay approximately $400.0 million in aggregate principal amount of outstanding borrowings under its North American revolving credit facility. The filing notes that certain initial purchasers and their affiliates serve as lenders under this revolving credit facility.
