PRA Group, Inc., a global leader in acquiring and collecting nonperforming loans, announced that it extended and amended its North American credit facility on August 26, 2020. Bank of America, N.A., served as Administrative Agent, and Bank of America, N.A., acting through its Canada branch, served as Canadian Administrative Agent.

The amendment includes the following changes, among other items:

• An additional term loan by certain lenders in an aggregate principal amount equal to $55.0 million, bringing the total term loan amount to $475.0 million.
• A reduction in the aggregate commitments under the domestic revolving credit facility from $1.068 billion to $1.0 billion.
• An increase in the aggregate commitments under the Canadian revolving credit facility from $50.0 million to $75.0 million.
• Decreases in the London Interbank Offered Rate and Eurodollar base rate floors from 1.00% to 0.75% for revolving loans.
• Amendment of certain negative covenants, including that (i) investments by any loan party in any entity are permitted in an amount not to exceed 75% of the aggregate principal amount of any indebtedness in the form of additional convertible notes and/or certain unsecured financings incurred after August 1, 2020, (ii) the elimination of the cap on debt incurred pursuant to certain unsecured financings and (iii) increase of the Brazilian foreign subsidiary borrowing basket from $150.0 million to the greater of (a) $200.0 million or (b) 5% of the consolidated total assets and expanded to cover subsidiaries organized under all foreign jurisdictions.
• Increase of the consolidated total leverage ratio from 3.00% to 3.50%.
• Extension of the maturity date from May 5, 2022 to May 5, 2024.

"We believe the amendment and extension combined with our recent bond issuance will provide us with the funding needed to meet our expected investment opportunities.  We appreciate the continued support and partnership from our lenders and their willingness to help us as we prepare for what we believe will be an increase in portfolio sales in the near future," said Pete Graham, executive vice president and chief financial officer for PRA Group.