PRA Group, Inc. (PRAA - Free Report) announced that it amended and expanded its North American credit facility on Oct 4, 2018. The company expanded its North American credit facility, increasing the U.S. revolving portion by $363 million for a total North American revolving credit facility of $1.118 billion. However, the term loan portion of the facility, along with rates and maturity, remains the same.
The amended facility also improves the accordion feature from $45 million to $500 million. Moreover, the revolving portion of the European credit facility was decreased by $100 million. It now stands at $800 million.
With the deal, the company will be able to carry on with its global funding objectives and investment opportunities. Rise in the North American and European facilities balance the excess capacity in Europe and is sufficient to invest in the United States. PRA Group is still witnessing high volume of non-performing loans at great returns in the United States.
The company is enjoying strong liquidity position that allows it to deploy cash for several investments. Its cash and cash equivalents have been rising since 2013, boosting the total current assets.
In the last year, the company also amended and restated its North American credit facility. With a five-year term, the deal consisted of total facility size of $1.2 billion, which included $450 million term loan facility and $755 million revolving loan facility.
These investments make the company well poised for growth.
Shares of this Zacks Rank #3 (Hold) company have rallied nearly 18.4% against its industry’s decline of 10.5% in a year's time.
Stocks to Consider
Investors looking for a few better-ranked stocks in the same sector may consider On Deck Capital, Inc. (ONDK - Free Report) , Cardtronics plc (CATM - Free Report) and Euronet Worldwide, Inc. (EEFT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Deck Capital operates as an online platform for small business lending in the United States, Canada and Australia. The company posted positive results in three out of the trailing four quarters, with an average positive surprise of 58.34%.
Cardtronics provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. It managed to pull off an average four-quarter earnings surprise of 40.92%.
Euronet Worldwide provides payment and transaction processing plus distribution solutions to financial institutions, retailers, service providers and individual consumers, worldwide. The company delivered an average trailing four-quarter beat of 0.38%.
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