PRA Group Inc

PRA Group, Inc. announced the pricing on September 29, 2026 of its offering of $400.0 million aggregate principal amount of 8.500% senior notes due 2033. The notes will be guaranteed on a senior unsecured basis by each of the Company's existing and future domestic subsidiaries that is a borrower or guarantor under the Company's North American Credit Agreement. PRA Group intends to use the net proceeds from the offering and available cash to repay approximately $400.0 million of its outstanding borrowings under its North American revolving credit facility. The offering is expected to close on or about October 2, 2026, subject to the satisfaction of customary closing conditions. The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain persons outside of the United States pursuant to Regulation S.

Encore Capital Group reported record global collections of $718.4 million in the first quarter of 2026, up 19% year over year, driven by technology improvements and strong U.S. portfolio supply. U.S. collections rose 23% to $556 million, and the company's Midland Credit Management platform recorded $315.8 million in portfolio purchases, one of its strongest U.S. quarters. However, rising legal collection costs, $4.03 billion in borrowings, and projected interest expense of about $300 million in 2026 are pressuring margins, even as the cash efficiency margin improved to 60.9% from 58.3% a year earlier. The European business, Cabot, delivered $161 million in collections, up 7%, but remains in a slower market with subdued lending and strong competition. Encore Capital shares have rallied 58.1% year to date, and the stock carries a Zacks Rank #1 (Strong Buy), though its Growth Score of D and Momentum Score of F suggest investors should monitor execution closely.