Portfolio Recovery Associates Expands Credit Facility to Accommodate Business Growth

NORFOLK, VA — Portfolio Recovery Associates, Inc. (NASDAQ: PRAA), a company that purchases and manages portfolios of defaulted consumer receivables and provides a broad range of receivables management and payments processing services, today announced expansion of its credit facility to $407.5 million from $365 million. The credit facility consists of a $357.5 million revolving credit facility maturing on December 20, 2014 and a $50 million fixed rate term loan maturing on May 4, 2012. Upon maturity of the fixed rate loan, the revolving facility will automatically be increased by the $50 million. The new credit facility replaces the existing credit facility, the revolver portion of which was scheduled to expire in May 2011.

The Company entered into the new, four-year credit agreement effective December 20, 2010, with Bank of America, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, Sun Trust Bank, as documentation agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as joint lead arrangers and joint book managers.

“We’re excited to have entered into this new credit agreement with a solid mix of banks, some of which have worked with us for years and others that are new to the PRA story,” said Kevin P. Stevenson, chief financial and administrative officer. “Our plan is to utilize our future cash flows from our past portfolio and business investments, along with this new credit facility in support of our business expansion plans in 2011 and beyond.”

About Portfolio Recovery Associates, Inc.
Portfolio Recovery Associates, Inc. (PRA) is the parent of companies whose business revolves around the detection, collection, and processing of both unpaid and normal-course receivables originally owed to credit grantors, governments, retailers and others. PRA’s primary business is the purchase, collection and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies, and retail merchants. Subsidiaries of PRA also provide fee-based services, including collateral-location services for credit originators via its IGS subsidiary, revenue administration, audit and debt discovery/recovery services for government entities through both its RDS and MuniServices businesses and class action claims recovery services and related payment processing through its CCB subsidiary.