PRA Group Announces Pricing of Offering of $400.0 Million of 8.500% Senior Notes due 2033

The notes add an 8.500% debt obligation due 2033, with proceeds intended to repay revolving credit borrowings.

Rhea-AI Summary

PRA Group (Nasdaq: PRAA) priced an offering of $400.0 million in senior notes to refinance borrowings under its revolving credit facility. The notes carry an 8.500% rate and mature in 2033. Closing is expected on or about October 2, 2026. PRA Group intends to use net proceeds and available cash to repay approximately $400.0 million under its North American revolving credit facility.

2 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointThe priced offering provides $400.0 million in senior-note financing, with closing expected on or about October 2, 2026. 53% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.PRA Group intends to repay approximately $400.0 million of revolving borrowings using net proceeds and available cash.

Negative

• Moderate pointThe senior notes carry an 8.500% rate and a 2033 maturity.
• Minor pointQualifying existing and future domestic subsidiaries will guarantee the notes on a senior unsecured basis.

News Explained

The priced PRA Group notes of $400.0 million will also carry senior unsecured guarantees from each existing and future domestic subsidiary that is a borrower or guarantor under the company’s North American Credit Agreement.

Key Figures

Senior notes principal: $400.0 million Interest rate: 8.500% Maturity: 2033 +1 more

Senior notes principal

$400.0 million

Offering priced September 29, 2026

Interest rate

8.500%

Senior notes due 2033

Maturity

2033

Senior notes

Expected closing

On or about October 2, 2026

Subject to customary closing conditions

Previous Offering Reports

2 past events · Latest: Sep 22

Same Type 2 events

1. Sep 22

   Proposed debt offering

   24h Move

   +0.7%

   Proposed €300 million notes to repay North American and European revolving-credit borrowings.

2. Sep 24

   Priced debt offering

   24h Move

   +0.2%

   Priced €300 million notes; proceeds were planned for revolving-credit refinancing and domestic subsidiary guarantees.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

rule 144a, regulation s, senior unsecured basis, revolving credit facility

4 terms

rule 144a regulatory

"in reliance on Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"pursuant to Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

senior unsecured basis financial

"guaranteed on a senior unsecured basis"

Debt issued on a senior unsecured basis is borrowing that ranks ahead of other unsecured or subordinated claims for repayment but is not backed by specific collateral. For investors it signals priority in the lender hierarchy—similar to being first in line at a buffet among unsecured creditors—and typically affects expected recovery in default and the interest rate the issuer must pay.

revolving credit facility financial

"outstanding borrowings under its North American revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NORFOLK, Va., Sept. 29, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, announced today the pricing on September 29, 2026 of its offering of $400.0 million aggregate principal amount of 8.500% senior notes due 2033 (the "notes"), in a private transaction that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The offering of the notes is expected to close on or about October 2, 2026, subject to the satisfaction of customary closing conditions.

The notes will be guaranteed on a senior unsecured basis by each of the Company's existing and future domestic subsidiaries that is a borrower or guarantor under the Company's North American Credit Agreement.

PRA Group intends to use the net proceeds from the offering and available cash to repay approximately $400.0 million of its outstanding borrowings under its North American revolving credit facility.

The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain persons outside of the United States pursuant to Regulation S under the Securities Act.

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. The offer and sale of the notes have not been and will not be registered under the Securities Act or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

About PRA Group, Inc.
As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their debt. Headquartered in Norfolk, Virginia, PRA Group has operations in the U.S., Europe, and other markets.

About Forward-Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com

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SOURCE PRA Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of PRA Group's senior-note offering?

PRA Group priced $400.0 million in aggregate principal amount of 8.500% senior notes due 2033. The offering is expected to close on or about October 2, 2026, subject to customary closing conditions.

Which PRA Group subsidiaries will guarantee the new senior notes?

Each existing and future domestic subsidiary that is a borrower or guarantor under PRA Group's North American Credit Agreement will guarantee the notes on a senior unsecured basis.