PRA GROUP INC 8-K

What Happened

• PRA Group Europe Holding S.à r.l. and its Swiss branch (Borrowers), subsidiaries of PRA Group Inc., on April 30, 2026 entered into a Second Amended and Restated Credit Agreement with lenders and DNB Bank ASA as facility agent and security agent.
• The agreement amends and restates the Company’s existing €730 million European revolving credit facility (originally entered Nov. 23, 2022, and amended Apr. 24, 2025). The Company issued a press release on May 5, 2026 announcing the transaction (filed as Exhibit 99.1).

Key Details

• Facility size: €730 million (revolving credit facility, amended and restated).
• Maturity extended from November 23, 2027 to April 30, 2031.
• Maximum ERC ratio reduced from 45.0% to 40.0%.
• Borrowers may (subject to conditions) make investments in or loans to joint ventures up to an aggregate of €100 million.
• DNB Bank ASA serves as EU facility agent and security agent; lenders and their affiliates may receive customary fees and maintain other banking relationships with the Company.

Why It Matters

• Liquidity and tenor: Extending the facility maturity to April 2031 lengthens the Company’s committed European borrowing runway, which can support operations and funding flexibility in Europe.
• Covenant changes: The lower maximum ERC ratio (45.0% → 40.0%) tightens a financial metric in the agreement and could affect covenant headroom; investors should note the stricter metric.
• Strategic optionality: The ability (under conditions) to fund up to €100M in JV investments/loans gives PRA Group flexibility to pursue partnerships or growth initiatives in Europe.
• Transparency: The transaction creates a direct financial obligation for the Borrowers under the agreement and was disclosed via press release (Exhibit 99.1) and will be attached to the Company’s next 10-Q.