NORFOLK, Va., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Portfolio Recovery Associates, Inc. (PRA) (Nasdaq:PRAA), a business and financial services company operating in the U.S. and U.K., today announced its intention to offer, subject to market and other conditions, $250 million aggregate principal amount of 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"). PRA also expects to grant the initial purchasers of the notes an option to purchase up to an additional $37.5 million aggregate principal amount of the notes to cover overallotments. The notes will be unsecured, senior obligations of PRA, and interest will be payable semi-annually. Prior to February 1, 2020, the notes will be convertible only upon the occurrence of specified events; thereafter, until maturity, the notes will be convertible at any time. Upon conversion, the notes will be settled in cash, shares of PRA's common stock or any combination thereof. PRA will not have the right to redeem the notes prior to maturity. Final terms of the notes, including the interest rate, conversion rate and other terms, will be determined by negotiations between PRA and the initial purchasers of the notes. PRA intends to use an amount estimated to be approximately $190 million of the net proceeds from the offering of the notes to temporarily repay debt outstanding under its $400 million revolving credit facility. PRA also intends to use up to $50 million of the net proceeds from the offering of the notes to repurchase shares of its common stock in negotiated transactions with institutional investors through one of the initial purchasers or its affiliate. PRA intends to use any remaining proceeds from the offering, if any, together with amounts available under its revolving credit facility, for portfolio acquisitions and/or business acquisitions, and for general corporate purposes including, but not limited to, organic growth, working capital and capital expenditures, or future stock repurchases and dividends.