Portfolio Recovery Associates Announces Closing of Public Offering and Exercise of Over-Allotment Option

NORFOLK, VA — Portfolio Recovery Associates, Inc. (NASDAQ: PRAA) ("Portfolio Recovery Associates" or the "Company") today announced that it has closed its previously announced public offering of 1,250,000 newly issued shares of its common stock. Prior to closing, the underwriters exercised in full their option to purchase an additional 187,500 shares of common stock to cover over-allotments. As a result, Portfolio Recovery Associates sold a total of 1,437,500 shares of its common stock at a price to the public of $52.50 per share.

Portfolio Recovery Associates received net proceeds from the offering of approximately $71.6 million, after deducting the underwriting discounts and commissions and estimated offering expenses. Portfolio Recovery Associates intends to use the net proceeds of the offering primarily to repay a portion of the debt outstanding under its $365 million revolving credit facility. Repaying a portion of the debt outstanding under its revolving credit facility will increase Portfolio Recovery Associates’ gross availability under the facility which, in turn, will allow the Company to draw down on the line of credit available thereunder for portfolio acquisitions and/or business acquisitions and for general corporate purposes including, but not limited to, organic growth, working capital and capital expenditures.