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PRA Group (PRAA) Concludes Refinancing $750M Revolving Credit
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PRA Group, Inc. (PRAA - Free Report) recently announced that it has concluded the refinancing of its $750 million Europe revolving credit facility. The company’s refinancing efforts incorporated a revolving credit facility of EUR 730 million along with an uncommitted accordion feature to EUR 500 million.
The move is expected to improve PRA Group’s balance sheet and capital position. It is likely to enable the company to reduce borrowing costs and increase financial flexibility. This is a prudent move considering that in the last several quarters, a rise in borrowing costs and increased leverage resulted in higher interest expenses.
PRA Group exited the third quarter with cash and cash equivalents of $58 million, which plunged 33.8% from the 2021-end level. Borrowings of $2,379.6 million fell 8.8% from Dec 31, 2021. It had $1.7 billion remaining under its credit facilities at the third-quarter end. The company’s total debt to total capital of 67.6% was higher than the industry’s figure of 57.1%.
The company expects the European market to witness a rise in portfolios with attractive returns in the coming days. Hence, the refinancing move is expected to enable PRAA to invest in strong portfolios when the opportunity arrives. Its European operations witnessed significant growth in the third quarter.
Per PRA Group’s latest quarterly report, it had a European Credit Agreement with an aggregate borrowing amount of around $750 million. At the third-quarter end, the unused amount of the fund was at $554.7 million.
Price Performance
Shares of PRA Group have remained flat over the past month compared with the 4.2% rise of the industry.
New York-based StoneX Group works as a global financial services network. The Zacks Consensus Estimate for SNEX’s current year bottom line is pegged at $8.71 per share, which increased 4.3% in the past 60 days.
Headquartered in Sao Paulo, Brazil, XP is a leading financial products and services provider. The Zacks Consensus Estimate for XP’s 2022 bottom line is pegged at $1.42 per share, indicating 22.4% year-over-year growth.
Based in San Francisco, NerdWallet is a digital platform operator connecting individuals and businesses with financial products suppliers. The Zacks Consensus Estimate for NRDS’ 2022 earnings signals a 74.4% improvement from a year ago.
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PRA Group (PRAA) Concludes Refinancing $750M Revolving Credit
PRA Group, Inc. (PRAA - Free Report) recently announced that it has concluded the refinancing of its $750 million Europe revolving credit facility. The company’s refinancing efforts incorporated a revolving credit facility of EUR 730 million along with an uncommitted accordion feature to EUR 500 million.
The move is expected to improve PRA Group’s balance sheet and capital position. It is likely to enable the company to reduce borrowing costs and increase financial flexibility. This is a prudent move considering that in the last several quarters, a rise in borrowing costs and increased leverage resulted in higher interest expenses.
PRA Group exited the third quarter with cash and cash equivalents of $58 million, which plunged 33.8% from the 2021-end level. Borrowings of $2,379.6 million fell 8.8% from Dec 31, 2021. It had $1.7 billion remaining under its credit facilities at the third-quarter end. The company’s total debt to total capital of 67.6% was higher than the industry’s figure of 57.1%.
The company expects the European market to witness a rise in portfolios with attractive returns in the coming days. Hence, the refinancing move is expected to enable PRAA to invest in strong portfolios when the opportunity arrives. Its European operations witnessed significant growth in the third quarter.
Per PRA Group’s latest quarterly report, it had a European Credit Agreement with an aggregate borrowing amount of around $750 million. At the third-quarter end, the unused amount of the fund was at $554.7 million.
Price Performance
Shares of PRA Group have remained flat over the past month compared with the 4.2% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
PRA Group currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are StoneX Group Inc. (SNEX - Free Report) , XP Inc. (XP - Free Report) and NerdWallet, Inc. (NRDS - Free Report) . While StoneX Group sports a Zacks Rank #1 (Strong Buy), XP and NerdWallet carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based StoneX Group works as a global financial services network. The Zacks Consensus Estimate for SNEX’s current year bottom line is pegged at $8.71 per share, which increased 4.3% in the past 60 days.
Headquartered in Sao Paulo, Brazil, XP is a leading financial products and services provider. The Zacks Consensus Estimate for XP’s 2022 bottom line is pegged at $1.42 per share, indicating 22.4% year-over-year growth.
Based in San Francisco, NerdWallet is a digital platform operator connecting individuals and businesses with financial products suppliers. The Zacks Consensus Estimate for NRDS’ 2022 earnings signals a 74.4% improvement from a year ago.