PRA Group prices €300 million senior notes offering at 6.250%

NORFOLK, Va. - PRA Group, Inc. (NASDAQ:PRAA), a company that acquires and collects nonperforming loans with a market capitalization of $623 million, announced today that its Luxembourg subsidiary has priced an offering of €300 million in senior notes with a 6.250% interest rate due in 2032. The company maintains strong liquidity with a current ratio of 13.86, indicating robust short-term financial health.

The notes, which are expected to close around September 30, will be guaranteed on a senior unsecured basis by PRA Group and its domestic subsidiaries that serve as borrowers or guarantors under the company’s North American Credit Agreement.

According to the announcement, PRA Group plans to use the proceeds to repay approximately $174 million of outstanding borrowings under its North American revolving credit facility and about $174 million under its European revolving credit facility. This refinancing comes as part of the company’s debt management strategy, with total debt currently standing at $3.65 billion.InvestingPro analysis reveals additional insights about PRA Group’s financial health and valuation metrics, with multiple ProTips available for subscribers.

The offering is being made only to qualified institutional buyers under Rule 144A of the Securities Act and to certain non-U.S. persons under Regulation S. The notes have not been registered under the Securities Act, meaning they cannot be sold in the United States except through exemptions from registration requirements.

The company specified that the notes are not intended for retail investors in the European Economic Area or the United Kingdom, and are targeted solely at eligible counterparties and professional clients.

This information is based on a press release statement from PRA Group. The offering remains subject to customary closing conditions. Trading at a P/E ratio of 6.86, PRA Group currently appears undervalued according to InvestingPro’s Fair Value analysis.

In other recent news, PRA Group Inc. reported its second-quarter 2025 earnings, delivering an earnings per share (EPS) of $1.08, which significantly exceeded analyst predictions of $0.66. However, the company’s revenue fell short of expectations, coming in at $287.69 million compared to the forecasted $291.99 million. Additionally, a notable portion of the EPS, approximately $0.75, was attributed to a one-time gain from the sale of its Brazilian servicing business. In another development, PRA Group announced plans to offer €300 million in senior notes due 2032 through its Luxembourg subsidiary, with these notes being guaranteed on a senior unsecured basis.

JMP Securities maintained its Market Outperform rating for PRA Group, raising the stock price target to $24.00 from $23.00, following the earnings report. The firm expressed minimal concern about the potential impact of Senate bill S.2495 on the company’s operations. These recent developments provide a snapshot of PRA Group’s current financial and strategic activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.