Portfolio Recovery Associates (PRAA) Commences 1M Common Offering

Portfolio Recovery Associates, Inc. (NASDAQ: PRAA) today announced that it has commenced an underwritten public offering of 1,000,000 shares of its common stock. In connection with the offering, Portfolio Recovery Associates will grant the underwriters a 30-day option to purchase up to an additional 150,000 shares of its common stock to cover over-allotments, if any.

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.

The offering is being conducted as a public offering pursuant to the Company's effective shelf registration statement under the Securities Act of 1933, as amended. William Blair & Company, L.L.C. is acting as sole book-running manager for the offering, and JMP Securities LLC is acting as co-lead manager.