Portfolio Recovery Associates, Inc. (NASDAQ: PRAA), a financial and business services company, today announced the close of a $600 million credit facility to fund business operations and expansion.

The five-year facility also contains an accordion feature that allows the company to request an increase of up to $250 million in borrowing availability. This new facility, which replaces PRA’s prior credit facility, allows for borrowing rate alternatives similar to the prior facility. However, the company expects to primarily utilize LIBOR-based loans which incur a spread of 250 basis points.

“This new credit facility expands our capacity to invest while lowering our funding costs. We remain focused, however, on keeping debt levels low. Every PRA investment, whether in a portfolio, business or new product offering here in the U.S. or globally, will continue to be carefully assessed to achieve appropriate, long-term returns,” said Kevin Stevenson, executive vice president, chief financial and administrative officer, treasurer and assistant secretary, PRA.

Bank of America Merrill Lynch led arrangements for the facility with Wells Fargo Securities and SunTrust Bank.

Portfolio Recovery Associates, Inc. (PRA) is a financial and business services company. A market leader in the consumer debt purchase and collection industry, PRA has a longstanding culture of compliance, engaging collaboratively with its customers to create realistic, affordable repayment plans. The company provides a broad range of business services to local government, auto lenders, law enforcement, institutional investors, manufacturers and retailers, and U.K. banks and creditors. PRA was recognized as one of Fortune’s 100 Fastest Growing Companies in 2012. The company also was named one of Forbes’ Top 25 Best Small Companies in America in 2012, and has been annually ranked as one of Forbes’ 100 Best Small Companies since 2007. For more information, visit www.PortfolioRecovery.com.