PRA Group Enters Material Definitive Agreement

TL;DR

PRA Group just signed a big deal, creating new financial obligations.

AI Summary

On September 30, 2025, PRA Group, Inc. entered into a material definitive agreement, creating a direct financial obligation. The filing details this agreement and related financial obligations under an off-balance sheet arrangement. The company is based in Norfolk, Virginia.

Why It Matters

This filing indicates a significant new financial commitment or obligation for PRA Group, which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating financial obligations can introduce new risks related to the terms of the agreement and the company's ability to meet them.

Key Players & Entities

• PRA Group, Inc. (company) — Registrant
• September 30, 2025 (date) — Date of Earliest Event Reported
• Norfolk, Virginia (location) — Address of principal executive offices

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share PRAA NASDAQ Global
• $174 million — om this offering to repay approximately $174 million aggregate principal amount of outstandi

Filing Documents

• praa-20250930.htm (8-K) — 43KB
• sept2025seniornotesindentu.htm (EX-4.1) — 870KB
• 0001185348-25-000034.txt ( ) — 1189KB
• praa-20250930.xsd (EX-101.SCH) — 2KB
• praa-20250930_lab.xml (EX-101.LAB) — 21KB
• praa-20250930_pre.xml (EX-101.PRE) — 12KB
• praa-20250930_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On September 30, 2025, PRA Group Europe Holding II S. r.l., a private limited liability company ( socit responsabilit limite ) incorporated and existing under the laws of the Grand Duchy of Luxembourg (the "Issuer") and a wholly-owned subsidiary of PRA Group, Inc. (the "Company"), completed its previously announced offering of 300 million aggregate principal amount of 6.250% Senior Notes due 2032 (the "Notes") in a private transaction that was exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes were issued pursuant to an Indenture, dated September 30, 2025 (the "Indenture"), among the Company, the Issuer, the Guarantors (as defined below), U.S. Bank Trustees Limited, as trustee (the "Trustee"), and U.S. Bank Europe DAC, as Paying Agent, Registrar and Transfer Agent. Pursuant to the Indenture, interest on the Notes will accrue at a rate of 6.250% per annum payable semiannually in arrears on March 31 and September 30 of each year, commencing on March 31, 2026. The Notes will mature on September 30, 2032, subject to earlier repurchase or redemption. Guarantees The Notes are guaranteed (the "Guarantees") on a senior unsecured basis by the Company and all of its existing and future domestic restricted subsidiaries that guarantee the Company's Amended and Restated Credit Agreement (as amended, the "North American Credit Agreement"), subject to certain exceptions (together with the Company, the "Guarantors"). Ranking The Notes and the Guarantees are unsecured, senior obligations of the Issuer and the Guarantors. The Notes and the Guarantees: (i) rank equally with the Issuer's and the Guarantors' existing and future unsecured senior indebtedness; (ii) rank senior in right of payment to all of the Issuer's and the Guarantors' existing and future indebtedness that is expressly subordinated in right of payment to the Notes; (iii) are effectively subord

Use of Proceeds

Use of Proceeds Th e Company intends to use the net proceeds from this offering to repay approximately $174 million aggregate principal amount of outstanding borrowings under its North American revolving credit facility (the "North American Revolver") of its North American Credit Agreement and approximately $174 million aggregate principal amount of outstanding borrowings under its European revolving credit facility (the "European Revolver") of its European Credit Agreement. These prepayments will not reduce the revolving borrowing commitment amount under either of the revolving credit facilities, and the prepaid amounts will be available for re-borrowing subject to customary conditions). Certain Relationships Some of the initial purchasers, the Trustee and/or their respective affiliates have provided and may, from time to time, continue to provide certain commercial banking, financial advisory, investment banking and other services to the Company, for which they have received and may continue to receive customary fees and reimbursements of expenses. Certain of the initial purchasers and/or certain of their affiliates are lenders under the North American Revolver and/or the European Revolver and, therefore, may receive a portion of the proceeds from this offering. The foregoing description of the Indenture is qualified in its entirety by reference to the Indenture, which is filed as Exhibit 4.1 to this Current Report on Form 8-K and is incorporated herein by reference. This Current Report on Form 8-K is neither an offer to sell nor a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits 4.1 Indenture (including form of note), dated as of September 30, 2025, among PRA Group Europe Holding II S..r.l., PRA Group Inc., the domestic subsidiaries of PRA Group, Inc. party thereto and U.S. Bank Trustees Limited, as trustee 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PRA Group, Inc. Date: October 1, 2025 By: /s/ Rakesh Sehgal Rakesh Sehgal Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR