PRA Group, Inc. (PRAA) stock soared 9.86% in the pre-market trading session at the price of $44.90 despite no updated news. The last reported news was the pricing of its offering of $350 million principal amount of 5.00% Senior Notes. PRAA is an international leader in collecting nonperforming loans. It helps consumers expand financial services and resolve debt issues by returning capital to banks and other creditors.
Pricing of $350.0 Million in Upsized Offering
On 17th September 2021, PRAA published an aggregate principal amount of $350.0 million in the pricing of its offering due 2029. The pricing had upsized by $50.0 million from its previously published offering amount of $300.0 million. The offering has closed on 22nd September 2021 and is subject to the customary closing conditions. Under its North American Credit Agreement, the company plans to use the net proceeds to refund $345.5 million of outstanding revolving borrowings. Under the Securities Act, the notes have been offered only to qualified institutional buyers in reliance and to certain persons outside the United States.
PRAA Second Quarter 2021 Financial Results
On 5th August 2021, PRAA reported its financial results for the second quarter and six months ended 30th June 2021. Net income attributable to the company was $56.0 million in the second quarter of 2021. The reported net income was $57.9 million in the prior year same quarter. Diluted earnings per share were $1.22 in the second quarter ended 30th June 2021, compared to $1.26 in the same quarter of the previous year. For the six months ended 30th June 2021, net income attributable to the company was $114.4 million, or $2.48 per diluted share. Net income attributable to the company was $77.0 million, or $1.68 per diluted share, during the six months ended 30th June 2020.
For the second quarter ended 30th June 2021, PRAA reported an increase of 7% or $33.9 million to $543.8 million in cash collections compared to the same quarter of 2020. The increment resulted from a 42% rise in Europe cash collections and a 20% gain in Other Americas & Australia Core cash collections. For the six months ended 30th June 2021, cash collections grew $95.2 million compared to the same period of the previous year. The company reported total portfolio revenue of $282.7 million for the second quarter ended 30th June 2021. It represents an increase of $14.6 million from $268.1 million during the second quarter of 2020. Total revenues increased 5% to $285.6 million in the second quarter of 2021 compared to the same quarter of 2020.