This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

PRA Closes $287.5 Million Offering Of Convertible Senior Notes Due 2020

Stocks in this article: PRAA

NORFOLK, Va., Aug. 14, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (PRA) (Nasdaq:PRAA), a business and financial services company operating in the U.S. and U.K., announced the August 13, 2013 closing of its previously announced offering of $250 million aggregate principal amount of 3.00% convertible senior notes due 2020 (the "notes") in a private placement to qualified, institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act"). In addition, PRA announced that the initial purchasers fully exercised their option to purchase an additional $37.5 million in aggregate principal amount of the notes.

The net proceeds from the sale of the notes, including proceeds resulting from the exercise of the initial purchasers' option to purchase an additional $37.5 million in aggregate principal amount of the notes, are approximately $279.0 million, after deducting the initial purchasers' discounts and estimated offering expenses.

The notes are senior unsecured obligations of PRA and pay interest semiannually at a rate of 3.00%. The notes mature on August 1, 2020, unless converted in accordance with their terms prior to such date. Prior to February 1, 2020, the notes are convertible only upon the occurrence of specified events; thereafter, until maturity, the notes are convertible at any time.

The conversion rate for the notes is initially 15.2172 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $65.72 per share of common stock, and is subject to adjustment in certain circumstances. The initial conversion price represents a premium of approximately 30% to the $50.55 per share closing price of PRA's common stock on August 7, 2013, the date on which PRA entered into the agreement with the initial purchasers regarding the purchase of the notes. Upon conversion, the notes may be settled in cash, shares of PRA's common stock or any combination thereof.  PRA does not have the right to redeem the notes prior to maturity.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs