10-Q 1 praa-20220331.htm 10-Q praa-20220331
false2022Q1000118534812/31P1YP1Y00011853482022-01-012022-03-3100011853482022-05-04xbrli:shares00011853482022-03-31iso4217:USD00011853482021-12-31iso4217:USDxbrli:shares00011853482021-01-012021-03-310001185348us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-12-310001185348us-gaap:RetainedEarningsMember2022-01-012022-03-310001185348us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001185348us-gaap:CommonStockMember2022-01-012022-03-310001185348us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001185348us-gaap:CommonStockMember2022-03-310001185348us-gaap:AdditionalPaidInCapitalMember2022-03-310001185348us-gaap:RetainedEarningsMember2022-03-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001185348us-gaap:NoncontrollingInterestMember2022-03-310001185348us-gaap:CommonStockMember2020-12-310001185348us-gaap:AdditionalPaidInCapitalMember2020-12-310001185348us-gaap:RetainedEarningsMember2020-12-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001185348us-gaap:NoncontrollingInterestMember2020-12-3100011853482020-12-310001185348srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2020-12-310001185348us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001185348srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001185348us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2020-12-310001185348us-gaap:RetainedEarningsMember2021-01-012021-03-310001185348us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001185348us-gaap:CommonStockMember2021-01-012021-03-310001185348us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001185348us-gaap:CommonStockMember2021-03-310001185348us-gaap:AdditionalPaidInCapitalMember2021-03-310001185348us-gaap:RetainedEarningsMember2021-03-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001185348us-gaap:NoncontrollingInterestMember2021-03-3100011853482021-03-31praa:segment0001185348country:US2022-01-012022-03-310001185348country:US2022-03-310001185348country:US2021-01-012021-03-310001185348country:US2021-03-310001185348country:GB2022-01-012022-03-310001185348country:GB2022-03-310001185348country:GB2021-01-012021-03-310001185348country:GB2021-03-310001185348praa:ForeignCountriesMember2022-01-012022-03-310001185348praa:ForeignCountriesMember2022-03-310001185348praa:ForeignCountriesMember2021-01-012021-03-310001185348praa:ForeignCountriesMember2021-03-31xbrli:pure0001185348praa:CorePortfolioSegmentMember2021-12-310001185348praa:InsolvencyPortfolioSegmentMember2021-12-310001185348praa:CorePortfolioSegmentMember2022-01-012022-03-310001185348praa:InsolvencyPortfolioSegmentMember2022-01-012022-03-310001185348praa:CorePortfolioSegmentMember2022-03-310001185348praa:InsolvencyPortfolioSegmentMember2022-03-310001185348praa:CorePortfolioSegmentMember2020-12-310001185348praa:InsolvencyPortfolioSegmentMember2020-12-310001185348praa:CorePortfolioSegmentMember2021-01-012021-03-310001185348praa:InsolvencyPortfolioSegmentMember2021-01-012021-03-310001185348praa:CorePortfolioSegmentMember2021-03-310001185348praa:InsolvencyPortfolioSegmentMember2021-03-310001185348us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel1Member2022-03-310001185348us-gaap:ExchangeTradedFundsMember2021-12-310001185348us-gaap:PrivateEquityFundsMember2022-03-310001185348us-gaap:PrivateEquityFundsMember2021-12-310001185348us-gaap:MutualFundMember2022-03-310001185348us-gaap:MutualFundMember2021-12-310001185348praa:GovernmentBondsandFixedIncomeFundsMember2022-03-310001185348praa:GovernmentBondsandFixedIncomeFundsMember2022-01-012022-03-310001185348praa:GovernmentBondsandFixedIncomeFundsMember2021-12-310001185348praa:GovernmentBondsandFixedIncomeFundsMember2021-01-012021-06-300001185348praa:RCBInvestimentosS.A.Member2022-03-310001185348srt:MinimumMember2022-03-310001185348srt:MaximumMember2022-03-310001185348praa:AmericasRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-03-310001185348praa:AmericasRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-310001185348praa:EuropeRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-03-310001185348praa:EuropeRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-310001185348us-gaap:MediumTermNotesMember2022-03-310001185348us-gaap:MediumTermNotesMember2021-12-310001185348us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001185348us-gaap:SeniorNotesMember2021-12-310001185348us-gaap:ConvertibleDebtMember2022-03-310001185348us-gaap:ConvertibleDebtMember2021-12-310001185348praa:ColombianRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001185348praa:ColombianRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-12-310001185348praa:NorthAmericanCreditAgreementMember2022-03-310001185348us-gaap:LineOfCreditMemberus-gaap:LineOfCreditMember2022-03-310001185348praa:NorthAmericanCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001185348praa:NorthAmericanCreditAgreementMemberpraa:CanadianRevolvingCreditFacilityMember2022-03-310001185348praa:CreditAgreementMemberus-gaap:EurodollarMembersrt:MaximumMember2022-01-012022-03-310001185348praa:CreditAgreementMemberus-gaap:EurodollarMembersrt:MinimumMember2022-01-012022-03-310001185348us-gaap:ConvertibleDebtMemberpraa:CreditAgreementMember2022-03-310001185348us-gaap:InterestRateFloorMember2022-01-012022-03-310001185348praa:CreditAgreementMembersrt:MaximumMember2022-01-012022-03-310001185348praa:CreditAgreementMembersrt:MinimumMember2022-01-012022-03-310001185348praa:CreditAgreementMemberpraa:EligibleCoreAssetPoolMember2022-01-012022-03-310001185348praa:CreditAgreementMemberpraa:EligibleInsolventAssetPoolMember2022-01-012022-03-310001185348praa:CreditAgreementMember2022-03-310001185348praa:CreditAgreementMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberpraa:InterbankOfferedRateIBORMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberpraa:InterbankOfferedRateIBORMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberpraa:OverdraftFacilityMember2022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberpraa:OverdraftFacilityMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMember2022-01-012022-03-310001185348praa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-31iso4217:SEK0001185348us-gaap:SubsequentEventMemberpraa:EuropeanRevolvingFacilityandTermLoanMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-04-070001185348us-gaap:SubsequentEventMemberpraa:UKCreditAgreementMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-04-010001185348us-gaap:SubsequentEventMemberus-gaap:EurodollarMemberpraa:UKCreditAgreementMembersrt:MaximumMember2022-04-012022-04-010001185348us-gaap:SubsequentEventMemberpraa:UKCreditAgreementMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-04-010001185348us-gaap:SubsequentEventMemberpraa:UKCreditAgreementMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-04-012022-04-010001185348us-gaap:SubsequentEventMemberpraa:UKCreditAgreementMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-04-012022-04-010001185348us-gaap:SubsequentEventMemberpraa:EligibleCoreAssetPoolMemberpraa:UKCreditAgreementMember2022-04-012022-04-010001185348us-gaap:SubsequentEventMemberpraa:EligibleInsolventAssetPoolMemberpraa:UKCreditAgreementMember2022-04-012022-04-010001185348us-gaap:SubsequentEventMemberpraa:UKCreditAgreementMember2022-04-010001185348us-gaap:SeniorNotesMemberpraa:A2029NotesMember2021-09-220001185348us-gaap:SeniorNotesMemberpraa:OnOrAfterSeptember12022Memberpraa:A2029NotesMember2021-09-222021-09-220001185348us-gaap:SeniorNotesMemberpraa:A2029NotesMemberpraa:September12023ToOctober312024Member2021-09-222021-09-220001185348us-gaap:SeniorNotesMemberpraa:A2029NotesMemberpraa:September12024AndThereafterMember2021-09-222021-09-220001185348us-gaap:SeniorNotesMemberpraa:A2029NotesMemberpraa:OnOrBeforeSeptember12022Member2021-09-222021-09-220001185348us-gaap:SeniorNotesMemberpraa:A2029NotesMemberpraa:ChangeOfControlEventMemberpraa:OnOrBeforeSeptember12022Member2021-09-222021-09-220001185348us-gaap:SeniorNotesMemberpraa:A2025NotesMember2020-08-270001185348us-gaap:SeniorNotesMemberpraa:OnOrAfterSeptember12022Memberpraa:A2025NotesMember2020-08-272020-08-270001185348us-gaap:SeniorNotesMemberpraa:A2025NotesMemberpraa:September12023ToOctober312024Member2020-08-272020-08-270001185348us-gaap:SeniorNotesMemberpraa:A2025NotesMemberpraa:September12024AndThereafterMember2020-08-272020-08-270001185348us-gaap:SeniorNotesMemberpraa:A2025NotesMemberpraa:OnOrBeforeSeptember12022Member2020-08-272020-08-270001185348us-gaap:SeniorNotesMemberpraa:A2025NotesMemberpraa:ChangeOfControlEventMemberpraa:OnOrBeforeSeptember12022Member2020-08-272020-08-270001185348us-gaap:ConvertibleDebtMemberpraa:NoteDue2023Member2017-05-260001185348us-gaap:ConvertibleDebtMemberpraa:NoteDue2023Member2017-05-262017-05-26praa:day0001185348us-gaap:ConvertibleDebtMemberpraa:NoteDue2023Member2022-03-310001185348us-gaap:ConvertibleDebtMember2022-01-012022-03-310001185348us-gaap:ConvertibleDebtMember2021-01-012021-03-310001185348us-gaap:OtherAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001185348us-gaap:OtherAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001185348us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2022-03-310001185348us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2021-12-310001185348us-gaap:NondesignatedMemberus-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMember2022-03-310001185348us-gaap:NondesignatedMemberus-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMember2021-12-310001185348us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherLiabilitiesMember2022-03-310001185348us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherLiabilitiesMember2021-12-310001185348us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001185348us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001185348srt:MinimumMember2022-01-012022-03-310001185348srt:MaximumMember2022-01-012022-03-310001185348us-gaap:InterestRateContractMember2022-01-012022-03-310001185348us-gaap:InterestRateContractMember2021-01-012021-03-310001185348us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2022-01-012022-03-310001185348us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-01-012021-03-310001185348us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-03-310001185348us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2021-12-310001185348us-gaap:ForeignCurrencyGainLossMemberus-gaap:ForeignExchangeContractMember2022-01-012022-03-310001185348us-gaap:ForeignCurrencyGainLossMemberus-gaap:ForeignExchangeContractMember2021-01-012021-03-310001185348us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2022-01-012022-03-310001185348us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-01-012021-03-310001185348us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001185348us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001185348us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel1Member2022-03-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001185348praa:GovernmentBondsMember2022-03-310001185348us-gaap:ExchangeTradedFundsMember2022-03-310001185348us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001185348us-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2022-03-310001185348us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Member2022-03-310001185348us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Member2022-03-310001185348us-gaap:FairValueInputsLevel3Memberus-gaap:MutualFundMember2022-03-310001185348us-gaap:FairValueInputsLevel1Member2022-03-310001185348us-gaap:FairValueInputsLevel2Member2022-03-310001185348us-gaap:FairValueInputsLevel3Member2022-03-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001185348praa:GovernmentBondsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001185348praa:GovernmentBondsMember2021-12-310001185348us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001185348us-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2021-12-310001185348us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Member2021-12-310001185348us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Member2021-12-310001185348us-gaap:FairValueInputsLevel3Memberus-gaap:MutualFundMember2021-12-310001185348us-gaap:FairValueInputsLevel1Member2021-12-310001185348us-gaap:FairValueInputsLevel2Member2021-12-310001185348us-gaap:FairValueInputsLevel3Member2021-12-310001185348us-gaap:PrivateEquityFundsMembersrt:MinimumMember2022-01-012022-03-310001185348us-gaap:PrivateEquityFundsMembersrt:MaximumMember2022-01-012022-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-12-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310001185348us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-01-012022-03-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-03-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-03-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-12-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-01-012021-03-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001185348us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310001185348us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-03-310001185348us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-03-3100011853482021-07-2900011853482021-10-2800011853482022-02-250001185348us-gaap:CashFlowHedgingMember2022-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2022
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________ to ________
Commission File Number: 000-50058
PRA Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware75-3078675
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

120 Corporate Boulevard
Norfolk, Virginia 23502
(Address of principal executive offices)

(888) 772-7326
(Registrant's Telephone No., including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  þ   No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  þ   No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer  þ   Accelerated filer  ¨   Non-accelerated filer  ¨   Smaller reporting company   Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  þ

The number of shares of the registrant's common stock outstanding as of May 4, 2022 was 39,789,622.



Table of Contents

Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Signatures
2


Part I. Financial Information
Item 1. Financial Statements (Unaudited)
PRA Group, Inc.
Consolidated Balance Sheets
March 31, 2022 and December 31, 2021
(Amounts in thousands)
(unaudited)
March 31,
2022
December 31,
2021
Assets
Cash and cash equivalents$79,089 $87,584 
Investments93,249 92,977 
Finance receivables, net3,310,747 3,428,285 
Income taxes receivable49,064 41,146 
Deferred tax assets, net63,965 67,760 
Right-of-use assets55,093 56,713 
Property and equipment, net54,401 54,513 
Goodwill483,380 480,263 
Other assets68,845 57,002 
Total assets$4,257,833 $4,366,243 
Liabilities and Equity
Liabilities:
Accounts payable$6,339 $3,821 
Accrued expenses90,282 127,802 
Income taxes payable13,743 19,276 
Deferred tax liabilities, net45,365 36,630 
Lease liabilities59,706 61,188 
Interest-bearing deposits117,035 124,623 
Borrowings2,539,462 2,608,714 
Other liabilities39,734 59,352 
Total liabilities2,911,666 3,041,406 
Equity:
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding
  
Common stock, $0.01 par value, 100,000 shares authorized, 40,410 shares issued and outstanding at March 31, 2022; 100,000 shares authorized, 41,008 shares issued and outstanding at December 31, 2021
404 410 
Additional paid-in capital  
Retained earnings1,548,845 1,552,845 
Accumulated other comprehensive loss(243,709)(266,909)
Total stockholders' equity - PRA Group, Inc.1,305,540 1,286,346 
Noncontrolling interest40,627 38,491 
Total equity1,346,167 1,324,837 
Total liabilities and equity$4,257,833 $4,366,243 
The accompanying notes are an integral part of these Consolidated Financial Statements.
3


PRA Group, Inc.
Consolidated Income Statements
For the Three Months Ended March 31, 2022 and 2021
(unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended March 31,
20222021
Revenues:
Portfolio income$207,532 $231,672 
Changes in expected recoveries29,914 50,136 
Total portfolio revenue237,446 281,808 
Fee income1,830 2,181 
Other revenue1,329 5,480 
Total revenues240,605 289,469 
Operating expenses:
Compensation and employee services71,096 73,984 
Legal collection fees10,873 12,926 
Legal collection costs16,557 21,312 
Agency fees17,388 15,591 
Outside fees and services19,378 20,760 
Communication12,583 12,663 
Rent and occupancy4,987 4,480 
Depreciation and amortization3,778 3,981 
Other operating expenses11,998 13,018 
Total operating expenses168,638 178,715 
   Income from operations71,967 110,754 
Other income and (expense):
Interest expense, net(31,748)(31,552)
Foreign exchange loss(532)(26)
Other(490)26 
Income before income taxes39,197 79,202 
Income tax expense4,579 17,322 
Net income34,618 61,880 
Adjustment for net (loss)/income attributable to noncontrolling interests(5,354)3,474 
Net income attributable to PRA Group, Inc.$39,972 $58,406 
Net income per common share attributable to PRA Group, Inc.:
Basic$0.98 $1.28 
Diluted$0.97 $1.27 
Weighted average number of shares outstanding:
Basic40,777 45,669 
Diluted41,304 46,045 
The accompanying notes are an integral part of these Consolidated Financial Statements.
4


PRA Group, Inc.
Consolidated Statements of Comprehensive Income/(Loss)
For the Three Months Ended March 31, 2022 and 2021
(unaudited)
(Amounts in thousands)
Three Months Ended March 31,
20222021
Net income$34,618 $61,880 
Other comprehensive income/(loss), net of tax:
Currency translation adjustments12,270 (24,531)
Cash flow hedges18,580 12,323 
Debt securities available-for-sale(160) 
Other comprehensive income/(loss)30,690 (12,208)
Total comprehensive income65,308 49,672 
Less comprehensive income/(loss) attributable to noncontrolling interests2,136 (950)
Comprehensive income attributable to PRA Group, Inc.$63,172 $50,622 
The accompanying notes are an integral part of these Consolidated Financial Statements.
5


PRA Group, Inc.
Consolidated Statements of Changes in Equity
For the Three Months Ended March 31, 2022 and 2021
(unaudited)
(Amounts in thousands)

Common StockAdditional Paid-InRetainedAccumulated Other ComprehensiveNoncontrollingTotal
SharesAmountCapitalEarnings(Loss)InterestEquity
Balance at December 31, 202141,008 $410 $ $1,552,845 $(266,909)$38,491 $1,324,837 
Components of comprehensive income, net of tax:
Net income— — — 39,972 — (5,354)34,618 
Currency translation adjustments— — — — 4,780 7,490 12,270 
Cash flow hedges— — — — 18,580 — 18,580 
Debt securities available-for-sale— — — — (160)— (160)
Vesting of restricted stock262 3 (3)— — —  
Repurchase and cancellation of common stock(860)(9)4,527 (43,972)(39,454)
Share-based compensation expense— — 3,891 — — — 3,891 
Employee stock relinquished for payment of taxes— — (8,415)— — — (8,415)
Balance at March 31, 202240,410 $404 $ $1,548,845 $(243,709)$40,627 $1,346,167 
Common StockAdditional Paid-InRetainedAccumulated Other ComprehensiveNoncontrollingTotal
SharesAmountCapitalEarnings(Loss)InterestEquity
Balance at December 31, 202045,585 $456 $75,282 $1,511,970 $(245,791)$31,609 $1,373,526 
Effect of change in accounting principle (1)
— — (26,697)12,008 — — (14,689)
Balance at January 1, 202145,585 456 48,585 1,523,978 (245,791)31,609 1,358,837 
Components of comprehensive income, net of tax:
Net income— — — 58,406 — 3,474 61,880 
Currency translation adjustments— — — — (20,108)(4,423)(24,531)
Cash flow hedges— — — — 12,323 — 12,323 
Distributions to noncontrolling interest— — — — — (3,933)(3,933)
Vesting of restricted stock214 2 (2)— — —  
Share-based compensation expense— — 4,113 — — — 4,113 
Employee stock relinquished for payment of taxes— — (5,460)— — — (5,460)
Balance at March 31, 202145,799 $458 $47,236 $1,582,384 $(253,576)$26,727 $1,403,229 
(1) Reflects adjustments recorded for the January 1, 2021 adoption of an accounting update. Refer to the Company's 2021 Annual Report on Form 10-K for more information.

The accompanying notes are an integral part of these Consolidated Financial Statements.



6


PRA Group, Inc.
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2022 and 2021
(unaudited)
(Amounts in thousands)
Three Months Ended March 31,
20222021
Cash flows from operating activities:
Net income$34,618 $61,880 
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense3,891 4,113 
Depreciation and amortization3,778 3,981 
Amortization of debt discount and issuance costs2,627 2,256 
Changes in expected recoveries(29,914)(50,136)
Deferred income taxes7,203 10,371 
Net unrealized foreign currency transactions(7,126)2,134 
Fair value in earnings for equity securities(60)(107)
Other(253)(419)
Changes in operating assets and liabilities:
Other assets738 10,713 
Accounts payable1,765 (431)
Income taxes payable, net(13,290)(3,669)
Accrued expenses(26,775)(20,227)
Other liabilities(87)(336)
Right of use asset/lease liability141 85 
Net cash (used)/provided by operating activities(22,744)20,208 
Cash flows from investing activities:
Purchases of property and equipment, net(3,744)(2,366)
Purchases of finance receivables(147,452)(159,328)
Recoveries applied to negative allowance278,271 328,559 
Purchases of investments(1,521) 
Proceeds from sales and maturities of investments775 764 
Business acquisition, net of cash acquired (647)
Net cash provided by investing activities126,329 166,982 
Cash flows from financing activities:
Proceeds from lines of credit106,371 45,369 
Principal payments on lines of credit(154,810)(226,621)
Principal payments on long-term debt(2,500)(2,500)
Repurchases of common stock(48,702) 
Payments of origination cost and fees(614)(113)
Tax withholdings related to share-based payments(8,415)(5,460)
Distributions paid to noncontrolling interest (3,933)
Net (decrease)/increase in interest-bearing deposits(3,977)303 
Net cash used in financing activities(112,647)(192,955)
Effect of exchange rate on cash910 (6,427)
Net decrease in cash and cash equivalents(8,152)(12,192)
Cash and cash equivalents beginning of period89,072 121,047 
Cash and cash equivalents, end of period$80,920 $108,855 
Supplemental disclosure of cash flow information:
Cash paid for interest$27,196 $32,622 
Cash paid for income taxes10,610 10,463 
Cash, cash equivalents and restricted cash reconciliation:
Cash and cash equivalents per Consolidated Balance Sheets$79,089 $92,798 
Restricted cash included in Other assets per Consolidated Balance Sheets1,831 16,057 
Total cash, cash equivalents and restricted cash$80,920 $108,855 
The accompanying notes are an integral part of these Consolidated Financial Statements.
7

PRA Group, Inc.
Notes to Consolidated Financial Statements

1. Organization and Business:
Nature of operations: As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries.
PRA Group, Inc., a Delaware corporation, is a global financial and business services company with operations in the Americas, Europe and Australia. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts in the United States ("U.S.").
Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The accompanying interim financial statements have been prepared in accordance with the instructions for Quarterly Reports on Form 10-Q and, therefore, do not include all information and Notes to the Consolidated Financial Statements necessary for a complete presentation of financial position, results of operations, comprehensive income/(loss) and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of March 31, 2022, its Consolidated Income Statements, Statements of Comprehensive Income/(Loss), Consolidated Statements of Changes in Equity and Statements of Cash Flows for the three months ended March 31, 2022 and 2021 have been included. The Company's Consolidated Income Statements for the three months ended March 31, 2022 may not be indicative of future results.
These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K").
Consolidation: The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated.
Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Company control, consist of entities which purchase and collect on portfolios of nonperforming loans.
Investments in companies in which the Company has significant influence over operating and financing decisions, but does not own a majority of the voting equity interests, are accounted for in accordance with the equity method of accounting, which requires the Company to recognize its proportionate share of the entity’s net earnings. These investments are included in Other assets, with income or loss included in Other revenue.
The Company performs on-going reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with an entity cause the Company’s consolidation conclusion to change.
Segments: The Company has determined that it has two operating segments that meet the aggregation criteria of Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280") and, therefore, it has one reportable segment, accounts receivable management. This conclusion is based on similarities among the operating units, including economic characteristics, the nature of the products and services, the nature of the production processes, the types or class of customer for their products and services, the methods used to distribute their products and services and the nature of the regulatory environment.
The following tables show the amount of revenue generated for the three months ended March 31, 2022 and 2021, and long-lived assets held at March 31, 2022 and 2021, both for the U.S., the Company's country of domicile, and outside of the U.S. (amounts in thousands):
As of and for theAs of and for the
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Revenues (2)
Long-Lived Assets
Revenues (2)
Long-Lived Assets
United States$151,425 $85,809 $178,181 $96,630 
United Kingdom43,954 6,851 48,177 2,269 
Other (1)
45,226 16,834 63,111 8,765 
Total$240,605 $109,494 $289,469 $107,664 
8

PRA Group, Inc.
Notes to Consolidated Financial Statements
(1) None of the countries included in "Others" comprise greater than 10% of the Company's consolidated revenues or long-lived assets.
(2) Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers by product or service.
Revenues are attributed to countries based on the location of the related operations. Long-lived assets consist of net property and equipment and right-of-use assets. The Company reports revenues earned from collection activities on nonperforming loans, fee-based services and investments. For additional information on the Company's investments, see Note 3.
2. Finance Receivables, net:
Finance receivables, net consisted of the following at March 31, 2022 and December 31, 2021 (amounts in thousands):
March 31, 2022December 31, 2021
Amortized cost$ $ 
Negative allowance for expected recoveries (1)
3,310,747 3,428,285 
Balance at end of period$3,310,747 $3,428,285 
(1) The negative allowance balance includes certain portfolios of nonperforming loans for which the Company holds a beneficial interest representing approximately 0.9% of the balance.
Changes in the negative allowance for expected recoveries by portfolio segment for the three months ended March 31, 2022 and 2021 were as follows (amounts in thousands):
Three Months Ended March 31, 2022
CoreInsolvencyTotal
Balance at beginning of period$2,989,932 $438,353 $3,428,285 
Initial negative allowance for expected recoveries - portfolio acquisitions (1)
129,404 18,048 147,452 
Foreign currency translation adjustment(11,009)(5,624)(16,633)
Recoveries applied to negative allowance (2)
(231,153)(47,118)(278,271)
Changes in expected recoveries (3)
25,147 4,767 29,914 
Balance at end of period$2,902,321 $408,426 $3,310,747 
Three Months Ended March 31, 2021
CoreInsolvencyTotal
Balance at beginning of period$3,019,477 $495,311 $3,514,788 
Initial negative allowance for expected recoveries - portfolio acquisitions (1)
133,007 25,954 158,961 
Foreign currency translation adjustment(24,249)1,589 (22,660)
Recoveries applied to negative allowance (2)
(285,171)(43,388)(328,559)
Changes in expected recoveries (3)
48,410 1,726 50,136 
Balance at end of period$2,891,474 $481,192 $3,372,666 
(1) Initial negative allowance for expected recoveries - portfolio acquisitions
Portfolio acquisitions for the three months ended March 31, 2022 and 2021 were as follows (amounts in thousands):
Three Months Ended March 31, 2022
CoreInsolvencyTotal
Face value$948,057 $97,083 $1,045,140 
Noncredit discount(91,600)(5,852)(97,452)
Allowance for credit losses at acquisition(727,053)(73,183)(800,236)
Purchase price$129,404 $18,048 $147,452 
9

PRA Group, Inc.
Notes to Consolidated Financial Statements
Three Months Ended March 31, 2021
CoreInsolvencyTotal
Face value$1,088,655 $134,811 $1,223,466 
Noncredit discount(132,532)(7,498)(140,030)
Allowance for credit losses at acquisition(823,116)(101,359)(924,475)
Purchase price$133,007 $25,954 $158,961 
The initial negative allowance recorded on portfolio acquisitions for the three months ended March 31, 2022 and 2021 was as follows (amounts in thousands):
Three Months Ended March 31, 2022
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(727,053)$(73,183)$(800,236)
Writeoffs, net727,053 73,183 800,236 
Expected recoveries129,404 18,048 147,452 
Initial negative allowance for expected recoveries$129,404 $18,048 $147,452 
Three Months Ended March 31, 2021
CoreInsolvencyTotal
Allowance for credit losses at acquisition$(823,116)$(101,359)$(924,475)
Writeoffs, net823,116 101,359 924,475 
Expected recoveries133,007 25,954 158,961 
Initial negative allowance for expected recoveries$133,007 $25,954 $158,961 
(2) Recoveries applied to negative allowance
Recoveries applied to the negative allowance were calculated as follows for the three months ended March 31, 2022 and 2021 (amounts in thousands):
Three Months Ended March 31, 2022
CoreInsolvencyTotal
Recoveries (a)
$425,508 $60,295 $485,803 
Less - amounts reclassified to portfolio income194,355 13,177 207,532 
Recoveries applied to negative allowance$231,153 $47,118 $278,271 
Three Months Ended March 31, 2021
CoreInsolvencyTotal
Recoveries (a)
$500,332 $59,899 $560,231 
Less - amounts reclassified to portfolio income 215,161 16,511 231,672 
Recoveries applied to negative allowance$285,171 $43,388 $328,559 
(a) Recoveries includes cash collections, buybacks and other cash-based adjustments.





10

PRA Group, Inc.
Notes to Consolidated Financial Statements
(3) Changes in expected recoveries
Changes in expected recoveries consisted of the following for the three months ended March 31, 2022 and 2021 (amounts in thousands):
Three Months Ended March 31, 2022
CoreInsolvencyTotal
Changes in expected future recoveries $9,771 $(3,525)$6,246 
Recoveries received in excess of forecast15,376 8,292 23,668 
Changes in expected recoveries$25,147 $4,767 $29,914 
Three Months Ended March 31, 2021
CoreInsolvencyTotal
Changes in expected future recoveries $(46,502)$(6,350)$(52,852)
Recoveries received in excess of forecast94,912 8,076 102,988 
Changes in expected recoveries$48,410 $1,726 $50,136 
In order to make estimates of cash collections, the Company considered historical performance, current economic forecasts, short-term and long-term growth and consumer habits in the various geographies in which the Company operates. The Company considered recent collection activity in its determination to adjust assumptions related to near-term estimated remaining collections ("ERC") for certain pools. Based on these considerations, the Company’s estimates incorporate changes in both amounts and in the timing of expected cash collections over the forecast period.
Changes in expected recoveries for the three months ended March 31, 2022 were a net positive $29.9 million. This reflects $23.7 million in recoveries received in excess of forecast reflecting strong cash collections overperformance in Europe and a $6.2 million positive adjustment to changes in expected future recoveries. The changes in expected future recoveries includes the Company's continued assumption that the majority of the overperformance was due to acceleration in the timing of cash collections. The Company also made near-term adjustments to expected future collections in certain geographies bringing them in line with recent performance trends with corresponding adjustments made later in the forecast period. The change in expected recoveries included a $20.5 million write down on one portfolio in Brazil.
Changes in expected recoveries for the three months ended March 31, 2021 were a net positive $50.1 million. This reflected $103.0 million in recoveries received in excess of forecast, which was largely due to significant cash collections overperformance, reduced by a $52.9 million negative adjustment to changes in expected future recoveries. The change in expected future recoveries reflect the Company's assumption that the majority of the overperformance was due to acceleration in the timing of cash collections rather than an increase to total expected collections.
3. Investments:
Investments consisted of the following at March 31, 2022 and December 31, 2021 (amounts in thousands):
March 31, 2022December 31, 2021
Debt securities
Available-for-sale$75,202 $77,538 
Equity securities
Exchange traded funds3,406 1,746 
Private equity funds5,059 5,137 
Mutual funds508 508 
Equity method investments9,074 8,048 
Total investments$93,249 $92,977 




11

PRA Group, Inc.
Notes to Consolidated Financial Statements
Debt Securities
Available-for-sale
Government securities: The Company's investments in government instruments, including bonds and treasury securities, are classified as available-for-sale and are stated at fair value.
The amortized cost and estimated fair value of investments in debt securities at March 31, 2022 and December 31, 2021 were as follows (amounts in thousands):
March 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesAggregate Fair Value
Available-for-sale
Government securities$75,582 $ $380 $75,202 
December 31, 2021
Amortized CostGross Unrealized GainsGross Unrealized LossesAggregate Fair Value
Available-for-sale
Government securities$77,757 $ $219 $77,538 
Equity Securities
Exchange traded funds: The Company invests in certain treasury bill exchange traded funds, which were accounted for as equity securities and carried at fair value. Gains and losses from these investments are included within Other income and (expense) in the Company's Consolidated Income Statements.
Private equity funds: Investments in private equity funds represent limited partnerships in which the Company has less than a 1% interest.
Mutual funds: Mutual funds represent funds held in Brazil in a Brazilian real denominated mutual fund benchmarked to the U.S. dollar that invests principally in Brazilian fixed income securities. The investments are carried at fair value based on quoted market prices. Gains and losses from these investments are included as a foreign exchange component of Other income and (expense) in the Company's Consolidated Income Statements.
Equity Method Investments
The Company has an 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing platform for nonperforming loans in Brazil. This investment is accounted for on the equity method because the Company exercises significant influence over RCB’s operating and financial activities. Accordingly, the Company’s investment in RCB is adjusted for the Company’s proportionate share of RCB’s earnings or losses, capital contributions made and distributions received.
4. Goodwill:
The Company performs an annual review of goodwill as of October 1 of each year or more frequently if indicators of impairment exist. The Company performed its most recent annual review as of October 1, 2021 and concluded that no goodwill impairment was necessary. The Company performed its quarterly assessment by evaluating whether any triggering events had occurred as of March 31, 2022, which included considering current market condition and concluded that no such event had occurred as of March 31, 2022.
The changes in goodwill for the three months ended March 31, 2022 and 2021, were as follows (amounts in thousands):
Three Months Ended March 31,
20222021
Balance at beginning of period$480,263 $492,989 
Change in foreign currency translation adjustment3,117 (238)
Balance at end of period$483,380 $492,751 
12

PRA Group, Inc.
Notes to Consolidated Financial Statements
5. Leases:
The Company's operating lease portfolio primarily includes corporate offices and call centers. The majority of its leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years, and others include options to terminate the leases within one year. Exercises of lease renewal options are typically at the Company's sole discretion and are included in its right-of-use ("ROU") assets and lease liabilities based upon whether the Company is reasonably certain of exercising the renewal options. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.
The components of lease expense for the three months ended March 31, 2022 and 2021, were as follows (amounts in thousands):
Three Months Ended March 31,
20222021
Operating lease expense$3,232 $2,981 
Short-term lease expense904 676 
Sublease income (115) 
Total lease expense$4,021 $3,657 
Supplemental cash flow information and non-cash activity related to leases for the three months ended March 31, 2022 and 2021 were as follows (amounts in thousands):
Three Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of operating lease liabilities$3,098 $2,865 
ROU assets obtained in exchange for operating lease obligations1,106 304 
Lease term and discount rate information related to operating leases was as follows:
Three Months Ended March 31,
20222021
Weighted-average remaining lease term (years)8.49.0
Weighted-average discount rate4.48 %4.72 %
Maturities of lease liabilities at March 31, 2022 were as follows for the following periods (amounts in thousands):
Operating Leases
For the nine months ending December 31, 2022$8,428 
For the year ending December 31, 20239,657 
For the year ending December 31, 20249,080 
For the year ending December 31, 20258,834 
For the year ending December 31, 20267,709 
Thereafter28,441 
Total lease payments$72,149 
Less: imputed interest12,443 
Total present value of lease liabilities$59,706 
13

PRA Group, Inc.
Notes to Consolidated Financial Statements
6. Borrowings:
The Company's borrowings consisted of the following as of March 31, 2022 and December 31, 2021 (amounts in thousands):
March 31, 2022December 31, 2021
Americas revolving credit (1)
$372,870 $372,119 
Europe revolving credit727,417 795,687 
Term loan457,500 460,000 
Senior notes650,000 650,000 
Convertible notes345,000 345,000 
2,552,787 2,622,806 
Less: Debt discount and issuance costs(13,325)(14,092)
Total$2,539,462 $2,608,714 
(1) Includes a credit agreement with Banco de Occidente. As of March 31, 2022 and December 31, 2021, the outstanding balance under the credit agreement was approximately $0.9 million, with interest rates of 8.69% and 5.85%, respectively.
The following principal payments were due on the Company's borrowings as of March 31, 2022 for the 12-month periods ending March 31, (amounts in thousands):
2023$10,324 
20241,082,741 
202510,242 
2026310,000 
2027789,480 
Thereafter350,000 
Total$2,552,787 
The Company determined that it was in compliance with the covenants of its financing arrangements as of March 31, 2022.
North American Revolving Credit and Term Loan
The Company has a credit agreement with Bank of America, N.A., as administrative agent, Bank of America, National Association, acting through its Canada branch, as the Canadian Administrative Agent, and a syndicate of lenders named therein (the "North American Credit Agreement").
The total credit facility under the North American Credit Agreement includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $457.5 million term loan, (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 million Canadian revolving credit facility. The facility includes an accordion feature for up to $500.0 million in additional commitments (at the option of the lenders) and also provides for up to $25.0 million of letters of credit and a $25.0 million swingline loan sub-limit that would reduce amounts available for borrowing. The term and revolving loans accrue interest, at the option of the Company, at either the base rate, Canadian dollar offered rate, or the Eurodollar rate (each, as defined in the North American Credit Agreement), for the applicable term plus 2.25% per annum, or 2.00% if the consolidated senior secured leverage ratio (as defined in the North American Credit Agreement) is less than or equal to 1.60 to 1.0. The revolving loans within the credit facility are subject to a 0.0% floor. The revolving credit facilities also bear an unused line fee of 0.35% per annum, or 0.30% if the consolidated senior secured leverage ratio (as defined in the North American Credit Agreement) is less than or equal to 1.60 to 1.0, payable quarterly in arrears and matures July 30, 2026. As of March 31, 2022, the unused portion of the North American Credit Agreement was $703.0 million. Considering borrowing base restrictions, as of March 31, 2022, the amount available to be drawn was $72.9 million.
Borrowings under the North American Credit Agreement are guaranteed by the Company's U.S. and Canadian subsidiaries (provided that the Canadian subsidiaries only guarantee borrowings under the Canadian revolving credit facility)
14

PRA Group, Inc.
Notes to Consolidated Financial Statements
and are secured by a first priority lien on substantially all of the Company's North American assets. The North American Credit Agreement contains restrictive covenants and events of default, including the following:
the ERC borrowing base is 35% for all eligible core asset pools and 55% for all insolvency eligible asset pools;
the consolidated total leverage ratio cannot exceed 3.50 to 1.0 as of the end of any fiscal quarter;
the consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter;
subject to no default or event of default, cash dividends and distributions during any fiscal year cannot exceed $20.0 million; and
the Company must maintain positive consolidated income from operations during any fiscal quarter.
European Revolving Credit Facility
European subsidiaries of the Company ("PRA Europe") are parties to a credit agreement with DNB Bank ASA and a syndicate of lenders named therein, for a Multicurrency Revolving Credit Facility (the "European Credit Agreement").
The European Credit Agreement provides borrowings for an aggregate amount of approximately $1.35 billion (subject to the borrowing base), accrues interest at the Interbank Offered Rate plus 2.70% - 3.80% (as determined by the ERC ratio ("ERC Ratio") as defined in the European Credit Agreement), bears an unused line fee, currently 1.12% per annum, or 35% of the margin, is payable monthly in arrears and matures February 19, 2023. The European Credit Agreement also includes an overdraft facility in the aggregate amount of $40.0 million (subject to the borrowing base), which accrues interest (per currency) at the daily rates as published by the facility agent, bears a facility line fee of 0.125% per quarter, payable quarterly in arrears and matures February 19, 2023. As of March 31, 2022, the unused portion of the European Credit Agreement (including the overdraft facility) was $662.6 million. Considering borrowing base restrictions and other covenants as of March 31, 2022, the amount available to be drawn under the European Credit Agreement (including the overdraft facility) was $498.2 million.
Borrowings under the European Credit Agreement are guaranteed by substantially all of the Company's European subsidiaries and are secured by the shares of most of the Company's European subsidiaries and all intercompany loans receivable in Europe. The European Credit Agreement contains restrictive covenants and events of default, including the following:
the ERC Ratio cannot exceed 45%;
the gross interest-bearing debt ratio in Europe cannot exceed 3.25 to 1.0 as of the end of any fiscal quarter;
interest bearing deposits in AK Nordic AB cannot exceed SEK 1.2 billion; and
PRA Europe's cash collections must meet certain thresholds, measured on a quarterly basis.

On March 29, 2022, in connection with the refinancing of the Company's European credit facilities, the Company executed the Eighth Amendment and Restatement to its European Credit Agreement ("Eighth Amendment"). On April 7, 2022, the Eighth Amendment was made effective, and among other things, extended the agreement for one year to February 19, 2024 and decreased aggregate borrowing limits by $600.0 million.
UK Revolving Credit Facility
On April 1, 2022, PRA Group Europe Holding I S.a r.l ("PRA Group Europe"), a wholly owned subsidiary of the Company, entered into a credit agreement (the "UK Credit Agreement") with PRA UK and the Company, as guarantors, the lenders party thereto and MUFG Bank, Ltd., London Branch, as the administrative agent (the "Administrative Agent").
The UK Credit Agreement consists of an $800.0 million revolving credit facility (subject to a borrowing base), and an accordion feature for up to $