Pra Group Inc. (PRAA) stock prices were up by 0.42% as of the market closing on September 24th, 2021. This brought the price per share up to USD$40.87 at the end of the trading day. Subsequent aftermarket fluctuations have seen the stock rise by 9.86%, bringing it up to USD$44.90.
PRAA Stock’s Senior Note Offering
PRAA stock upsized its previously announced public offering of senior notes from USD$300 million to USD$350 million. The notes carry an interest rate of 5% and will be due in the fiscal year 2029. Partners under its North American Credit Agreement (NACA) will be guaranteeing the notes on a senior unsecured basis. Funds generated from the offering are expected to be used to pay back USD$345.5 million of the company’s outstanding revolving borrowings under the NACA.
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Cash Collection Reports
Cash collections for the second quarter of fiscal 2021 were up by USD$33.9 million as compared to the prior year quarter. This year over year difference was largely attributable to a 42% increase in Europe cash collections. Further consolidating the yearly gains was a 20% increase in Other Americans and Australia Core cash collection. These gains, however, were partially offset by a decrease in U.S. call centers and U.S. legal cash collections. PRAA stock reported a USD$95.2 million increase in cash collections for the six month period ended June 30th 2021, as compared to the prior year quarter.
Impressive Portfolio Revenue
PRAA stock reported total portfolio revenue in the amount of USD$282.7 million for the second quarter of fiscal 2021. This is a USD$14.6 million increase from the USD$268.1 million reported for the second quarter of fiscal 2020. The company has assumed the acceleration of future collections as being a substantial driver for the current quarter overperformance. Accordingly, it has made adjustments in some geographies to increase near term expected collections. This will bring them in line with recent performance and trends in collections, while accounting for corresponding reductions later in the forecast period.
Future Outlook for PRAA Stock
The company reported a massively successful second quarter of fiscal 2021. PRAA stock has also taken measures to ensure consistency in performance over the long term by adjusting their forecasts and allocating resources effectively. Investors are hopeful that these resources will be utilized effectively, thereby driving significant and sustained increases in shareholder value over the long term.