Portfolio Recovery Associates Closes on Expanded $150 Million Credit Line

Portfolio Recovery Associates, Inc., a company that purchases and manages portfolios of defaulted consumer receivables and provides a broad range of accounts receivable management services, announced it has closed on an expanded $150 million bank credit line.

This credit line expansion is one component of a three-part program announced on April 24, 2007 to move toward optimizing the Company’s capital structure. In addition to the larger credit line, this program includes the previously announced $1 per share, one-time special dividend and one million share stock repurchase program.

The expanded $150 million line, which includes an option to set a 5-year fixed-rate tranche of $50 million, doubles the Company’s credit line from the prior $75 million.

"We are pleased to have completed work with our lenders on an expanded $150 million line of credit, doubling our borrowing capacity. Importantly, this borrowing capability is part of a three-part program announced last month to help move the Company toward an optimal capital structure. The expanded credit line may be used in part to fund our announced special dividend and share repurchase program. In addition, it gives us significant flexibility to take advantage of opportunities we see both in the defaulted consumer debt market and elsewhere," said Kevin P. Stevenson, Chief Financial and Administrative Officer.

Lenders participating in the expanded line include Bank of America, N.A., Wachovia Bank, National Association, and RBC Centura Bank.